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Q. Explain about Inventory Turnover Ratio ?
Inventory Turnover Ratio: - Definite items of inventory are slow moving. It signifies that their consumption is quite slow and capital remains locked up in such items for a long period. As a consequence carrying costs continue to incur on such items. Slow moving items are able to be identified with the help of inventory turnover ratios.
Inventory Turnover Ratio (in times) = Cost of Goods Sold / Average Stock
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It is, usually, not possible to totally eliminate both translation exposure and transaction exposure. In few cases, the elimination of one exposure will as well eliminate the othe
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