Question regarding inventory turnover ratio


An inventory turnover ratio of 7.2 compared to industry average of 5.1 is likely to point out that

A. The firm has higher sales than the industry average.

B. The firm is selling a product mix that includes more high margin items.

C. The firm's products are in inventory for fewer days before they are sold than is average for the industry.

D. The firm is managing its inventory inefficiently.

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Finance Basics: Question regarding inventory turnover ratio
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