Days' inventory on hand is used to analyze
A)cash flow adequacy.
B)operating asset management.
C)profitability.
D)long-term solvency.

Question

Quizplus · Accepted Answer

Days' inventory on hand measures the number of days it takes for a company to sell its inventory. This helps to analyze how efficiently a company is managing its operating assets, as a lower number of days indicates that inventory is turning over quickly and efficiently.

Days' Inventory on Hand Is Used to Analyze