Which of the following ratios is used to determine how quickly and easily a company is able to sell its inventory?
A) Current ratio
B) Inventory turnover
C) Price/earnings ratio
D) Return on net sales

Question

Quizplus · Accepted Answer

Inventory turnover ratio is used to determine how quickly a company is able to sell its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a specific period of time. A higher inventory turnover ratio indicates that a company is able to sell its inventory quickly and efficiently.

Which of the Following Ratios Is Used to Determine How