The formula below is used to calculate the _______ .
Definitions:
Inventory Turnover
A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management and sales performance.
Average Collection Period
The average number of days it takes for a company to receive payments owed by its customers for goods or services sold on credit.
Liquidity
A measure of how easily assets can be converted into cash without affecting their market price.
Profitability
An indicator of how well a company is able to produce profit through its business activities.
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