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How would you interpret an inventory turnover ratio of 12.4?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 4QTD

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How would you interpret an inventory turnover ratio of 12.4?

Expert Solution

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The question is based on the concept of ratio analysis and an inventory turnover ratio.

Inventory Turnover ratio can be calculated as,

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