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Kailyn Sheehan
on Nov 13, 2024

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Assuming that the quantities of inventory on hand during the current year were sufficient to meet all demands for sales, a decrease in the inventory turnover for the current year when compared with the turnover for the preceding year indicates an improvement in inventory management.

Inventory Turnover

Inventory turnover is a measure of how frequently a company sells and replaces its stock of goods within a certain period, indicating the efficiency of inventory management.

Inventory Management

The process of ordering, storing, using, and selling a company's inventory, which includes both raw materials and finished goods.

  • Understand the principle of working capital and its significance in evaluating short-term financial health.
  • Identify the consequences of variations in financial ratios over time.
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Savannah Alegria-GabrielNov 14, 2024
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