How does the inventory turnover ratio tell us about a company’s efficiency?

answer
The correct answer is 1. Inventory turnover tells us how many times we'll replace our inventory in a certain period of time. If you want to find the average amount of days that your inventory is sitting in your warehouse, you have to flip the ratio around and divided by 365 days.
Part of the course

Try it out

00:00
00:00

Pick a plan that suits you the best!

Monthly Subscription

$12/month
(billed monthly)

Annual Subscription

$5/month 
(billed annually)

All our plans includes:

  • High quality audio lessons
  • Lesson summaries
  • Interactive questions
  • Learn & Earn
  • Flashcards
  • Lesson transcripts
  • Learning community