How is inventory turnover calculated

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Reference no: EM131901956

Problem

Let's discuss Inventory Turnover. This is a "ratio" that companies, lenders and investors can use when analyzing accounting data.

How is Inventory Turnover calculated?

What does it tell us about a company?

If you were a manager, would you prefer a high inventory turnover or a low inventory turnover. Why?

Reference no: EM131901956

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