Days in inventory is a ratio measure that shows how quickly a company can collect its receivables.

Name: Days in inventory is a ratio measure that shows how quickly a company can collect its receivables.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

Days in inventory is actually a ratio measure that shows how long a company takes to sell its inventory. It is calculated by dividing the average inventory by the cost of goods sold and multiplying the result by the number of days in the period being analyzed.

Days in Inventory Is a Ratio Measure That Shows How