Select one that is NOT correct about the inventory turnover ratio.

It is useful in guiding decisions about pricing, manufacturing, marketing, purchasing, and product lifecycle.

The desirable number of turns is $4$ per year. That is$,$ it is for a turn per quarter.

The ratio indicates how many times a year the inventory is cleared out.

A low ratio indicates weak sales, low market demand, or excessive inventory.

A high ratio indicates strong sales, efficient use of inventory, or insufficient inventory.