From the following details, calculate Current ratio:

Solution

Current Ratio = Current Assets/ Current Liabilities = 80,000/60,000 = 1.33      Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a period of time. Inventory Turnover equals to Cot of Goods Sold (COGS)/Average Inventory. Higher inventory turns equate to higher sales, especially when compared to a competitor in the same market. Inventory turns are also an indicator of how well a company is matching its inventory levels to support its sales.