Two of the efficiency ratios mentioned in the chapter are the receivable turnover ratio and the inventory turnover ratio While they are two completely separate measures, they are very similar in one way What is the common thread between these two ...

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Two of the efficiency ratios mentioned in the chapter are the receivable turnover ratio and the inventory

Question:

Two of the efficiency ratios mentioned in the chapter are the receivable turnover ratio and the . While they are two completely separate measures, they are very similar in one way. What is the common thread between these two?

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,...