Question: What does a high inventory turnover ratio indicate about a company's inventory management? What does a high inventory turnover ratio indicate about a company's inventory

What does a high inventory turnover ratio indicate about a company's inventory management?
What does a high inventory turnover ratio indicate about a company's inventory management?
The company efficiently converts its inventory investment into sales revenue.
The company is experiencing frequent stockouts, necessitating rapid replenishment.
The company has a high level of obsolete inventory, requiring frequent disposal.
The company is holding too much inventory, leading to increased carrying costs.

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