Practicing Success
Which one of the following will indicate that the firm is experiencing stockouts and lost sales? |
Average Payment Period Average Collection Period Inventory Turnover Ratio Quick Ratio |
Inventory Turnover Ratio |
Inventory Turnover Ratio : It determines the number of times inventory is converted into revenue from operations during the accounting period under consideration. It expresses the relationship between the cost of revenue from operations and average inventory. The formula for its calculation is as follows: |