The inventory turnover measures the relative size of the inventory and the effectiveness of credit policies.

Name: The inventory turnover measures the relative size of the inventory and the effectiveness of credit policies.
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The inventory turnover measures how quickly a company sells its inventory and is calculated by dividing the cost of goods sold by the average inventory. It is a measure of operational efficiency and does not directly relate to credit policies.

The Inventory Turnover Measures the Relative Size of the Inventory