A low inventory turnover may indicate that a company is experiencing difficulty selling its inventory.

Question

Quizplus · Accepted Answer

A low inventory turnover means that it takes longer for a company to sell its inventory, which can indicate that there is a problem with demand or pricing, or that the inventory is obsolete or outdated. This can lead to cash flow problems for the company and may indicate difficulty in selling its inventory. Therefore, the statement is true.

A Low Inventory Turnover May Indicate That a Company Is