3. A low inventory turnover ratio, relative to industry norms, suggests thatthe firm has an above-average inventory level and/or that part of theinventory is obsolete or damaged. *TrueFalse

A low inventory turnover will often mean you're holding too much stock, which will increase your…

Answered: . A low inventory turnove he firm has…

. A low inventory turnove he firm has an above-ave nventory is obsolete or da D True D False

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 2DQ

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3. A low inventory turnover ratio, relative to industry norms, suggests that
the firm has an above-average inventory level and/or that part of the
inventory is obsolete or damaged. *
True
False

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