What Does Inventory Turnover Measure? What Does a Low Rate

question 135

Essay

What does inventory turnover measure? What does a low rate of inventory turnover indicate?

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Definitions:

Marginal Efficiency

The rate of return on an investment that is additional or marginal to the current level of investment.

Capital

Assets or resources, such as machinery, buildings, or money, that can be used to produce goods and services and generate wealth.

Coined

Refers to the creation of a new word or phrase or the process of making coins as a form of currency.

Interest Rate

The percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.