What Can a Poor or Declining Inventory Turnover Tell You

question 7

Essay

What can a poor or declining inventory turnover tell you?

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Definitions:

Solvency Analysis

An assessment of a company's ability to meet its long-term financial obligations and continue its operations.

Quick Assets

Cash and other current assets that can be quickly converted to cash, such as marketable securities and receivables.

Marketable Securities

Financial instruments and assets that can be easily converted into cash, often with a maturity of less than a year, such as stocks or bonds.

Intangible Assets

Long-term assets that are useful in the operations of a business, are not held for sale, and are without physical qualities.