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The Days' Sales in Inventory Ratio Is Computed by Dividing

question 113

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The days' sales in inventory ratio is computed by dividing ending inventory by cost of goods sold and multiplying the result by 365.


Definitions:

Market Maker

A firm or individual who actively quotes both buy and sell prices for financial instruments, contributing to liquidity and efficiency in the markets.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Bid-ask Spread

The gap between the maximum price a buyer is ready to offer (bid) and the minimum price a seller agrees to sell (ask) for an asset.

Market Maker

A firm or individual that actively quotes both a buy and sell price in a financial market, providing liquidity and facilitating trading.

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