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

Question

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] · Answer 1 · 2023-06-05T12:38:13+03:00

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