inversion specialists, inc., is relatively new in the industry and has calculated its inventory turnover at 5. what action would result in decreased inventory turns for inversion specialists, inc.? part 2

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07-09-2022
Business

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inversion specialists, inc., is relatively new in the industry and has calculated its inventory turnover at 5. what action would result in decreased inventory turns for inversion specialists, inc.? part 2

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aryanagarwal466 aryanagarwal466 · Answer 1 · 2022-09-11T11:00:24+02:00

Increasing the average aggregate inventory value will result in inventory turnover for Inversion Specialists Inc.

Inventory turnover is a financial ratio that shows how many times a company's inventory is sold and replaced during a given period. The days in the period can then be divided by the inventory turnover formula to determine how long it takes to sell the inventory on hand.

Calculating the inventory turnover ratio can assist businesses in making better pricing, manufacturing, marketing, and purchasing new inventory decisions.

Low inventory turnover ratios indicate poor sales and possibly excess inventory, also known as overstocking. It could indicate a problem with the goods for sale or be the result of insufficient marketing.

In contrast, a high inventory turnover ratio indicates either strong sales or insufficient inventory. The former is preferable, whereas the latter may result in lost business.

Learn more about Inventory turnover here:

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inversion​ specialists, inc., is relatively new in the industry and has calculated its inventory turnover at 5. what action would result in decreased inventory turns for inversion​ specialists, inc.? part 2

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inversion specialists, inc., is relatively new in the industry and has calculated its inventory turnover at 5. what action would result in decreased inventory turns for inversion specialists, inc.? part 2