Vites Equipment Company has increased its inventory turnover ratio from 12 to 18.By how many days has it reduced the operating cycle?

Name: Vites Equipment Company has increased its inventory turnover ratio from 12 to 18.By how many days has it reduced the operating cycle?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The inventory turnover ratio increased from 12 to 18, indicating faster inventory turnover. The operating cycle is reduced by the difference in days calculated from the turnover ratios: (365/12) - (365/18) = 10 days.

Vites Equipment Company Has Increased Its Inventory Turnover Ratio from 12