The industry average inventory turnover ratio is 7 and your companys is 15. This could be good

Question:

The industry average is 7 and your company’s is 15. This could be good or bad news. Explain each possibility. How would you find out whether it is bad news?

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...