Explain whether a higher inventory turnover ratio is normally considered to be positive. Identify a potential concern

Question:

Explain whether a higher inventory turnover ratio is normally considered to be positive. Identify a potential concern that may arise if this ratio is too high.

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,...

Fantastic news! We've Found the answer you've been seeking!