Generally,a lower gross profit ratio reflects positively on a company's ability to manage its inventory.

Question

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A higher gross profit ratio reflects positively on a company's ability to manage its inventory, as it indicates that the company is able to sell its inventory at a higher profit margin. A lower gross profit ratio may indicate that the company is having difficulty selling its inventory or that it is carrying too much inventory.

Generally,a Lower Gross Profit Ratio Reflects Positively on a Company's