Financial management
This query is : Resolved
14 April 2010
Higher inventory turnover is most beneficial or lower is better. Ex: Company A has ITR=10 Company B has ITR=12 which company is better.
14 April 2010
Stock Turnover Ratio = Cost of Goods Sold/Average Stock
ITR-A= 10 times
ITR-B = 12 times
Analysis:- Stock turnover ratio shows that every rupee invested in stock has been used to achieve more sales. A firm with high ratio can sell even at a low margin.A higher ratio indicates that the firm is making higher sales and that it’s storage cost is low.
ITR-A= 10 times
ITR-B = 12 times
Analysis:- Stock turnover ratio shows that every rupee invested in stock has been used to achieve more sales. A firm with high ratio can sell even at a low margin.A higher ratio indicates that the firm is making higher sales and that it’s storage cost is low.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting our of sec 44AD
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Copyright software
- Form 121 & TDS deduction
- Regarding TDS Applicability For Director Remuneration
- Multiple trade mark
- Transporter Declaration form
- LC charges in relation to Asset purchased should be Capitalised ?
- Regarding appeal to GSTAT
- Value of property in capital gain
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
