The inventory turnover ratio:

A) Is used to analyze collectability.
B) Is used to measure solvency.
C) Reveals how many times a company sells its merchandise inventory during a period.
D) Reveals how many days a company can sell inventory if no new merchandise is purchased.
E) Calculation depends on the company's inventory valuation method.

Inventory Turnover Ratio

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

Merchandise Inventory

The goods a company has in stock and available for sale to customers.

Selling Activity

This refers to the process or actions involved in transferring ownership of goods or services from one party to another in exchange for money.