As a company's inventory turnover ratio decreases from one year to the next, they will find that the number of days inventory is held before sale:

Question

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The inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory. A decrease in inventory turnover ratio means that inventory is being held for a longer period before being sold. Therefore, the number of days inventory is held before sale will increase.

As a Company's Inventory Turnover Ratio Decreases from One Year