The inventory turnover ratio:
A: Is used to analyze profitability.
B: Is used to measure solvency.
C: Reveals how many times a company turns over (sells) its merchandise inventory.
D: Validates the acid-test ratio.
E: Calculation depends on the company's inventory valuation method.
A: Is used to analyze profitability.
B: Is used to measure solvency.
C: Reveals how many times a company turns over (sells) its merchandise inventory.
D: Validates the acid-test ratio.
E: Calculation depends on the company's inventory valuation method.
举一反三
- Among the following ratios, which is used for solvency analysis? A: inventory turnover B: times interest earned C: price-earnings ratio D: return on total assets
- Which of the following ratios and rates that measure debt-paying ability focuses on the long-term position of a company? A: Quick ratio B: Inventory turnover C: Current ratio D: Debt ratio
- is used for long-term solvency. A: Current ratio B: Time-interest-earned ratio C: Inventory period D: Book value per share
- The current ratio: () A: Is used to measure a company's profitability. B: Is used to measure the relation between assets and long-term debt. C: Measures the effect of operating income on profit. D: Is used to help evaluate a company's ability to pay its debts in the near future.
- The inventory turnover ratio compares: