Days' sales in inventory is a ratio measure that shows how quickly a company can collect its receivables.

Name: Days' sales in inventory is a ratio measure that shows how quickly a company can collect its receivables.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

Days' sales in inventory is actually a ratio measure that shows how quickly a company can sell its inventory. The ratio is calculated by dividing the average inventory by the cost of goods sold and multiplying the result by 365 (or the number of days in the year).

Days' Sales in Inventory Is a Ratio Measure That Shows