Inventorty turnover ratio
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 October 2011
HI
RESPECTED MEMBBER
I WANT TO KNOW MEANING OF INVENTORY TURNOVER RATIO?
WHAT IS GOOD FOR COMPANY WHETHER IT SHOULD BE HIGH OR LOW?
WHAT IS CONSEQUENCES OF HIGH AND LOW TURNOVER RATIO?
FOR GOOD COMPANY PERFORMANCE WHAT SHOULD BE THERE HIGH OR LOW?
RESPECTED MEMBBER
I WANT TO KNOW MEANING OF INVENTORY TURNOVER RATIO?
WHAT IS GOOD FOR COMPANY WHETHER IT SHOULD BE HIGH OR LOW?
WHAT IS CONSEQUENCES OF HIGH AND LOW TURNOVER RATIO?
FOR GOOD COMPANY PERFORMANCE WHAT SHOULD BE THERE HIGH OR LOW?
11 October 2011
Inventory Turnover ratio ratio represents number of times the inventory converted in to turnover. A high inventory turnover ratio represents a healthy and positive sign as it means less duration of holding inventory, whereas a low ratio means excessive and long holding period of inventory which ultimately results in high inventory holding cost.
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