Accountancy, asked by usmanansari432000, 6 months ago

Q.5 high inventory turnover means
Investment tied up in stocks
Obsolete goods on stock
Adverse impact on liquidity
Over trading​

Answers

Answered by Anonymous
5

Answer:

The higher the inventory turnover, the better, since high inventory turnover typically means a company is selling goods quickly, and there is considerable demand for their products. Low inventory turnover, on the other hand, would likely indicate weaker sales and declining demand for a company's products.

Answered by nehu9830
2

Explanation:

What Is Inventory Turnover?

Inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a given period. A company can then divide the days in the period by the inventory turnover formula to calculate the days it takes to sell the inventory on hand. Calculating inventory turnover can help businesses make better decisions on pricing, manufacturing, marketing and purchasing new inventory.

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