Which financial ratio measures the number of times that average inventory of finished goods was turned over or sold during a period of time?
A)days of inventory
B)asset turnover
C)inventory turnover
D)fixed asset turnover
E)average collection period

Question

Quizplus · Accepted Answer

Inventory turnover ratio measures the number of times that average inventory of finished goods was turned over or sold during a period of time. It is calculated by dividing cost of goods sold by average inventory for the period.

Which Financial Ratio Measures the Number of Times That Average