Question: What does a high inventory turnover ratio indicate? Inventory management is inefficient and sales were low due to lack of inventory. The inventory is being

What does a high inventory turnover ratio indicate? Inventory management is inefficient and sales were low due to lack of inventory. The inventory is being managed efficiently or sales were low due to lack of inventory. Inventory management was inefficient but sales were high due to overstocking items. Inventory management is efficient and sales were high due to overstocking items

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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 Finance Questions!

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...

You helped me a couple of weeks ago. I was wondering if i could setup a time for tomorrow that you could be available to help me with some questions. I will pay $20 per question. They are short and I...

Answer true / false: a) A high "inventory turnover ratio" may be as much trouble for a company as a low inventory turnover situation. b) A rising "accounts receivable DSO" is always a sign of...

A Financial Ratio Analysis of Target Corporation An Asset Management Assessment Assume that you are an existing bondholder of Target Corporation (TGT), a retailer of "everyday essentials and...

Pls do question for thumbs up ;) Assume that you are a prospective business partner of Target Corporation (TGT), a retailer of "everyday essentials and fashionable, differentiated merchandise at...

options for blank 1:"deteriorating" and "improving" options for blank 2: "increased" and "decreased" options for blank 3: "losing out on" and "gaining" options for blank 4: "unfavorably" and...

36. Which company has the most risk from an investor's standpoint? Firm A has a PE of 92 times and Firm B has a PE of 16 times. Assume both firms operate in the same industry. Firm A has fewer shares...

Question 20 (Mandatory) (0.5 points) Which statement is true? O Extremely high levels of liquidity guard against liquidity crises, but at the cost of lower returns on assets. Liquid assets generate...

Question 21 (Mandatory) (0.5 points) Which of these statements is true? O A high inventory turnover ratio or a low days' sales in inventory is a sign of good inventory management A low inventory...

On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit $ 25,700 46,000 Credit Cash Accounts Receivable Allowance for Uncollectible...

Fastic Corporation makes a product with the following standard costs: Standard Price or Rate $5.00 per liter $17.00 per hour $6.00 per hour The company reported the following results concerning this...

MD&A and Statistical Tables. * What are the three largest sources of governmental funds revenue? What percentage of the governmental funds revenue is from each of these sources? * Sales tax is a...

For the given cash flows, suppose the firm uses the NPV decision rule. YearCash Flow 0 $ 1 6 0 , 0 0 0 1 5 6 , 0 0 0 2 8 3 , 0 0 0 3 6 7 , 0 0 0 At a required return of 9 percent, what is the NPV of...

6-46. SOCIAL NETWORKING SKILLS [LO-6] You belong to a community group that promotes local and organic producers. One of your big success stories is the summer farmers markets that started in your...

6-44. MEDIA SKILLS: BLOGGING; COMPOSITIONAL MODES: TUTORIALS [LO-1], [LO-6] Studying abroad for a semester or a year can be a rewarding experience in many ways improving your language skills,...

6-45. MEDIA SKILLS: MICROBLOGGING; COMPOSITIONAL MODES: SUMMARIES [LO-1], [LO-6] A carefully constructed series of tweets can serve as a summary of a blog post, video, or other message or document.