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    pitttorr's Avatar
    pitttorr Posts: 1, Reputation: 1
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    #1

    Dec 12, 2010, 06:11 PM
    Inventory turnover and current ratios
    Inventory turnover and current ratios they related?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Dec 12, 2010, 08:37 PM

    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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