Which of these would you expect to have the highest inventory turnover ratio?
A)Ford Motor Company - automobile manufacturer.
B)The Boeing Company - aircraft manufacturer.
C)McDonald's Corporation - quick service hamburger restaurants.
D)Macy's,Inc.- clothing and home furnishings retailer.

Question

Quizplus · Accepted Answer

Analysts can assess how many times,on average,inventory has been bought and sold during the period by calculating the inventory turnover ratio.A higher ratio indicates that inventory moves more quickly from purchase to sale,reducing storage and obsolescence costs.Since McDonald's sells food in its restaurants,it would be reasonable to expect that company to have the highest inventory turnover ratio.

Which of These Would You Expect to Have the Highest