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Which of the Following Statements About Net Working Capital (NWC)

question 76

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Which of the following statements about net working capital (NWC) is correct?


Definitions:

Days' Sales in Inventory

A financial metric that calculates the average number of days a company takes to sell its inventory, indicating the efficiency of inventory management.

Dividend Yield

A fiscal metric indicating the annual dividend payment of a company as a proportion of its stock price.

Total Asset Turnover

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.

Inventory Turnover

An index that measures how often a firm's inventory is sold out and resupplied over a set period.

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