Home
Learn
Discover
Profile

A low inventory turnover ratio means the stock is being sold quickly.

avatar
Amanda Barbosa
2 years ago
Question 10 of 18
Career development
Image

A low inventory turnover ratio means the stock is being sold quickly.

Part of the course
Retail Sales: Fundamental Formulas You Should Know
New
Start micro-course
18 questions (9 min)
View more

Why?

The inventory turnover shows how fast a company sells and replaces its inventory. While a high ratio usually means the stock is being sold quickly, a low ratio might indicate poor sales and excess inventory. By measuring it, businesses can better place orders when updating or restocking inventory.
Image
Source: "Inventory Turnover" on corporatefinanceinstitute.com

Do your friends know the answer?

    More courses

    More seeds