The inventory turnover ratio indicates how rapidly inventory is sold.

Name: The inventory turnover ratio indicates how rapidly inventory is sold.
Brand: Quizplus
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Quizplus · Accepted Answer

The inventory turnover ratio is a measure of how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced during a period. A higher inventory turnover ratio indicates that inventory is selling quickly, and a lower ratio suggests that inventory is not selling as quickly as it could be.

The Inventory Turnover Ratio Indicates How Rapidly Inventory Is Sold