Asked by
Kailyn Sheehan
on Nov 13, 2024Verified
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.
Verified Answer
SA
Learning Objectives
- 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.
Related questions
An Increase in the Accounts Receivable Turnover May Be Due ...
Using Measures to Assess a Business's Ability to Pay Its ...
Current Position Analysis Is Used by Short-Term Creditors to Assess ...
Last Year Mittel (Ottawa) Had a Total Debt Ratio Of ...
Last Year, New Flying Industries Had a Price-Earnings Ratio of ...