General Studies · Ratio Analysis
If a firm has a high inventory turnover ratio but a low quick ratio, it primarily indicates:
- 1Excessive liquidity with idle funds
- 2Efficient stock management but possible short-term liquidity strain✓
- 3Overcapitalisation
- 4High reliance on long-term borrowings
Correct answer
Efficient stock management but possible short-term liquidity strain
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Preparing for General Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Want more practice questions on Ratio Analysis?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Studies · Ratio Analysis