The receivable turnover and inventory turnover ratios are used to analyze

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The receivable turnover and inventory turnover ratios are both used to analyze a company's liquidity. Receivable turnover measures how quickly a company collects its accounts receivable, while inventory turnover measures how quickly a company sells its inventory. These ratios are important indicators of how easily a company can convert its assets into cash to meet short-term obligations.

The Receivable Turnover and Inventory Turnover Ratios Are Used to Analyze