Company A has an inventory turnover ratio of 8 0 times Company B has an inventory turnover ratio of 10 0 times Both companies are in the same industry Which company manages its inventory more efficiently Explain ...

Generally a higher inventory turnover ratio is a sign ...

Company A has an inventory turnover ratio of 8.0 times. Company B has an inventory turnover ratio

Question:

Company A has an of 8.0 times. Company B has an of 10.0 times. Both companies are in the same industry. Which company manages its inventory more efficiently? Explain.

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,...