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-   -   Inventory turnover and current ratios (https://www.askmehelpdesk.com/showthread.php?t=534155)

  • Dec 12, 2010, 06:11 PM
    pitttorr
    Inventory turnover and current ratios
    Inventory turnover and current ratios they related?
  • Dec 12, 2010, 08:37 PM
    Just Looking

    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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