Inventory Turnover Ratio Is an Example of Which Type of Ratio

question 39

Multiple Choice

Inventory turnover ratio is an example of which type of ratio?

• A) solvency ratio
• B) profitability ratio
• C) liquidity ratio
• D) activity ratio

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Definitions:

Average Returns

Refers to the mean financial return of an investment over a specified period, which includes dividends, interest, and capital gains.

Standard Deviation

A statistical measure that quantifies the amount of variability or dispersion around an average.

Capital Markets

Financial markets where long-term debt or equity-backed securities are bought and sold, facilitating the raising of capital.

Risk And Return

The principle that the potential return on any investment is directly correlated with the amount of risk taken; higher risks typically offer the chance for greater rewards.