Accounting · Financial Ratios
Read the following statements carefully: Statement 1: A high inventory turnover ratio indicates that a company is efficiently managing its inventory and selling goods quickly. Statement 2: A low inventory turnover ratio means that a company is efficiently managing its inventory and minimizing excess stock.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both Statements are incorrect
- 2Only Statement 2 is correct
- 3Only Statement 1 is correct✓
- 4Both Statements are correct
Correct answer
Only Statement 1 is correct
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