📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    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.

    Practice Next
    More ESIC Part B Questions