Inventory turnover and current ratios they related?
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Inventory turnover and current ratios they related?
They use entirely different data and look at different aspects of the business.
Inventory turnover tells you the number of times inventory is sold or used in a time, often a year. A low turnover could mean the company has obsolence issues, or problems with their product line or marketing efforts.
Current ratio measures the company's ability to pay short-term debt.
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