Which of the following is an important measure of the average movement of goods "on and off the shelf" of a company?
A)Profit margin.
B)Price/earnings ratio.
C)Gross inventory ratio.
D)Inventory turnover ratio.

Question

Quizplus · Accepted Answer

The inventory turnover ratio is a key performance indicator that measures how quickly a company is selling its inventory and restocking it. It is calculated by dividing the cost of goods sold by the average inventory value. A high inventory turnover ratio indicates that a company is efficiently managing its inventory and quickly selling goods, while a low ratio suggests that it may be overstocked or struggling to move products off the shelf.

Which of the Following Is an Important Measure of the Average