"Days of inventory" is an example of a(n)
A) leverage ratio.
B) liquidity ratio
C) activity ratio.
D) asset management ratio.
E) profitability ratio.

Question

Quizplus · Accepted Answer

"Days of inventory" is a measure of how quickly a company sells its inventory, which falls under activity ratios. These ratios are used to evaluate a company's efficiency in managing its assets and are used to measure how effectively a company is using its resources to generate sales.

"Days of Inventory" Is an Example of A(n)