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      Question

      Which of the following financial ratios measures a

      company's efficiency in managing its inventory?
      A Debt-to-equity ratio Correct Answer Incorrect Answer
      B Current ratio Correct Answer Incorrect Answer
      C Inventory turnover ratio Correct Answer Incorrect Answer
      D Gross margin ratio Correct Answer Incorrect Answer

      Solution

      The inventory turnover ratio measures a company's efficiency in managing its inventory by comparing its cost of goods sold to its average inventory level.

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