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Is it possible for the inventory turnover to be too high

A company that grants terms of n/45 on all sales has a yearly accounts receivable turnover, based on monthly averages, of 5. Is this a satisfactory turnover? Discuss. Why is it advantageous to have a high inventory turnover? Is it possible for the inventory turnover to be too high? Discuss. Is it possible to have a high inventory turnover and a high number of days' sales in inventory? Discuss.

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Is it possible for the inventory turnover to be too high

Reference No:- TGS0673857

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Offset the credit exposure

Q : What is the trend in cash from operations

Q : The market price of sandals common stock

Q : What is the present value of the salvage value

Q : Is it possible for the inventory turnover to be too high

Q : How the production-volume variance might be indicated

Q : Find earnings per share in preceding year adjusted

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Q : What type of analysis is indicated by profitability analysis

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Is it possible for the inventory turnover to be too high

Reference No:- TGS0673857

Recent Questions Asked Finance Basics

Q : Offset the credit exposure

Q : What is the trend in cash from operations

Q : The market price of sandals common stock

Q : What is the present value of the salvage value

Q : Is it possible for the inventory turnover to be too high

Q : How the production-volume variance might be indicated

Q : Find earnings per share in preceding year adjusted

Q : Prepare the entry to record payment of the note at maturity

Q : What type of analysis is indicated by profitability analysis

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