What does the inventory turnover period ratio measure?
A)The liquidity of the firm
B)How much the firm's current assets could decrease and still leave it able to pay its current liabilities
C)Profitability
D)The average time an organisation holds inventory

Question

Quizplus · Accepted Answer

The inventory turnover period ratio is used to measure the average time an organization holds inventory. This metric is used to assess the efficiency of inventory management and can help to identify opportunities to improve cash flow and profitability.

What Does the Inventory Turnover Period Ratio Measure