if-a-companys-inventory-turnover-ratio-is-6-while-the-industry-average-is-4-what

Question

If a company's inventory turnover ratio is 6, while the industry average is 4, what can be inferred?

Accepted Answer

The company is more efficient in managing its inventory than its competitors.

Answer

The company is less efficient in managing its inventory than 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.