Asked by
Harshit Sharma
on Nov 08, 2024Verified
The financial ratio days' sales in inventory is measured as:
A) Inventory turnover plus 365 days.
B) Inventory times 365 days.
C) Inventory plus cost of goods sold, divided by 365 days.
D) 365 days divided by inventory.
E) 365 days divided by inventory turnover.
Days' Sales In Inventory
A measure of how efficiently a company manages its inventory, calculated by dividing the inventory by the daily average cost of goods sold.
Inventory Turnover
A metric demonstrating the rate at which a business's inventory is sold and restocked over a designated span.
Cost Of Goods Sold
Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company, including materials and labor costs.
- Analyze primary financial indicators, like profit margin, fixed asset turnover, and total asset turnover.
Verified Answer
VB
Learning Objectives
- Analyze primary financial indicators, like profit margin, fixed asset turnover, and total asset turnover.