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omeli [17]
2 years ago
6

Four companies computed their days' sales in inventory as follows: Company A: 47.2 Company B: 36.5 Company C: 45.1 Company D: 39

.4 Which company is the most efficient and effective in managing its inventory
Business
1 answer:
Leviafan [203]2 years ago
7 0

The most efficient and effective in managing its inventory is Company B.

<h3>Who is the most efficient?</h3>

The days' sales in inventory  is a financial ratio that measures the rate at which a firm is able to sell its inventory in a given year. The lower the ratio, the more efficient a firm is in selling its inventory.

Days' sales in inventory = number of days in a period / inventory turnover

Inventory turnover =  cost of goods sold / average inventory

To learn more about financial ratios, please check: brainly.com/question/26092288

#SPJ1

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