A firm's ________ expresses the number of times per year the business sells all of its inventory.
A)liquidity ratio
B)inventory turnover ratio
C)operating ratio
D)quick ratio

Question

Quizplus · Accepted Answer

Inventory turnover ratio expresses how many times in a year a company sells its inventory. It is calculated by dividing the cost of goods sold by the average inventory value. The ratio measures how efficiently a company manages its inventory and how quickly it can turn it into sales, providing insights into the company's sales and purchasing practices.

A Firm's ________ Expresses the Number of Times Per Year