Asked by
Noora Sheikh
on Nov 12, 2024
Verified
The inventory turnover ratio is equal to the average inventory balance divided by the cost of goods sold.
Inventory Turnover Ratio
A metric indicating how often a company's inventory is sold and replaced over a specific period, useful in evaluating the efficiency of inventory management.
- Execute the computation and analysis of turnover ratios, notable examples being accounts receivable turnover and inventory turnover.
Verified Answer
CZ
Learning Objectives
- Execute the computation and analysis of turnover ratios, notable examples being accounts receivable turnover and inventory turnover.
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