Asked by
Jessica Miller
on Oct 22, 2024
Verified
Inventory turnover = ___.
A) Current Assets - Inventories ÷ Current Liabilities
B) Net Income ÷ Total Assets
C) Total Debts ÷ Total Inventories
D) Net Income ÷ Owner's Equity
E) Sales ÷ Average Inventory
Inventory Turnover
A measure of how quickly a company sells and replaces its inventory over a certain period, indicating the efficiency of inventory management.
Net Income
Net income represents the total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue, indicating the actual profit made during a specified period.
Total Assets
The sum of all resources owned by a company, valued in monetary terms, which includes tangible and intangible items.
- Build competency in comprehending and quantifying financial ratios to assess financial health in terms of liquidity, profitability, and efficiency.
Verified Answer
JT
Learning Objectives
- Build competency in comprehending and quantifying financial ratios to assess financial health in terms of liquidity, profitability, and efficiency.