The Inventory Turnover and Current Ratios Are Related

question 60

True/False

The inventory turnover and current ratios are related. The combination of a high current ratio and a low inventory turnover ratio relative to the industry norm might indicate that the firm is maintaining too high an inventory level or that part of the inventory is obsolete or damaged.

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Definitions:

Nonprofit

Organizations that operate for the public or social benefit without the intention of making profits for owners or shareholders.

Collaboration

The process of two or more people, organizations, or entities working together to complete a task or achieve a goal.

Organizational Cultures

The collection of values, expectations, and practices that guide and inform the actions of all team members within an organization.

Strategic Alliances

Agreements between businesses to pursue shared objectives while remaining independent organizations.