a-company-has-an-inventory-turnover-ratio-of-7-while-the-industry-average-is-6-w

Question

A company has an inventory turnover ratio of 7, while the industry average is 6. What does this suggest?

Accepted Answer

The company is more efficient in managing its inventory compared to its competitors.

Answer

The company is less efficient in managing its inventory compared to its competitors.

Answer

The company has a higher cost of goods sold than its competitors.

Answer

The company has a lower average inventory than its competitors.