Question: What does a high inventory turnover indicate?

What does a high inventory turnover indicate?

Step by Step Solution

★★★★★

3.31 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A high inventory turnover ind... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Managerial Accounting 4th Edition Questions!

Q:

A. Why is a high inventory turnover considered to be a positive indicator? B. Is it possible to have a high inventory turnover and a high number of days' sales in inventory? Why?

Q:

What does a high current ratio indicate about a company?

Q:

A high inventory turnover ratio provides evidence that a company is having problems with stockouts and disgruntled customers. Do you agree? Explain.

Q:

1. Describe horizontal analysis. Describe vertical analysis. What is each technique used for? How are the two methods similar? How are they different? 2. How is the current ratio calculated? What is...

Q:

Chapter 5 Leaming Note 3 October 7, 2020 Page 2 Inventory Presentation and Analysis section of Chapter 6 9. At a minimum, what must a company disclose in its notes to the financial statements...

Q:

Suppose a company has a relatively high inventory turnover. What does the high inventory turnover indicate about the companys short-term liquidity?

Q:

Question 5 0 ( 0 . 4 points ) What does a high inventory turnover indicate? Fast inventory movement and lower holding costs Slow inventory movement Poor customer service Increased supply chain...

Q:

You are starting a business that manages camping sites, and you have $2,000 of equity. Create a simple balance sheet and income statement for the first 2 years of business. The images are just for...

Q:

asset utilization ratios ratios that measure how wella firm uses its assets to generate each $1 of sales receivables turnover sales divided by accounts receivable inventory turnover sales divided by...

Q:

PLEASE HELP!! Madison Makeup has borrowed 6 times in its history. The following table provides data on the loans. Fill in the highlighted cells. Loan Amount originally borrowed Time loan was made...

Q:

A piston/cylinder contains 1 kg of liquid water at 20C and 300 kPa. There is a linear spring mounted on the piston such that when the water is heated the pressure reaches 3 MPa with a volume...

Q:

An employee borrows P60 000 for 7 months at an interest rate of 12% per year. How much is the simple interest? Grace borrowed P5 000 with a simple interest rate of 2.5%. She will use the money for 3...

Q:

Volunteer Corporation reported taxable income of $ 4 8 5 , 0 0 0 from operations this year

Q:

Critically assess the respective advantages and disadvantages to organisations and to employees of the different activities to foster engagement.

Q:

Luthan Company uses a predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on 11,000 estimated direct labor-hours and $257,400 of estimated total...

Q:

Primare Corporation has provided the following data concerning last month's manufacturing operations. Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a...

Q:

Primare Corporation has provided the following data concerning last month's manufacturing operations. Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a...

Q:

You've collected the following information from your favorite financlal website. According to your research, the growth rate in dividends for Manta Energy for the previous 1 0 years has been negatlve...

Q:

What happens to a company's weighted average cost of capital (WACC) if the firm's corporate tax rate increases and if the Federal Reserve causes an increase in the risk-free rate, respectively?...

Q:

Operating exposure captures the extent to which exchange rate changes affect the firm's known cash flows from existing contracts. Select one: True False