Suppose you are a financial detective. You are assigned to study ABC Corporation's financial ratios. Your goal: to determine if the firm is stock the right merchandise at the right time. For example, a ski shop selling water skis in the spring/summer and water skis in the fall/winter. Which ratio would you first want to compare with that of other ski shops?
OPM (operating profit margin)
TATO (total asset turnover)
DSO (Days Sales Outstanding)
ITO (inventory turnover)