Question
Asked Dec 9, 2019
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which of the following is considered a signal of success for a manufacturing company?

A) A low quick ratio

B) A high inventory turnover ratio

C) A high current ratio

D) Low quality costs

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Expert Answer

Step 1

The inventory turnover ratio measures the effectiveness of a company’s manufacturing process. This ratio shows how many times a company sells and replaces its inventory over a specific period of time.

 

An investor should maintain a watchful eye for a turnover ratio that is high, as a low c...

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