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Which financial ratio incorporates inventory values to measure the health of a business?
  • a)
    Debt-to-Equity ratio
  • b)
    Return on Investment (ROI)
  • c)
    Inventory Turnover ratio
  • d)
    Current Ratio
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which financial ratio incorporates inventory values to measure the hea...
The Inventory Turnover ratio is a financial ratio that incorporates inventory values to measure the health of a business. It shows how efficiently a company is managing its inventory by calculating the number of times inventory is sold and replaced over a period.
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Which financial ratio incorporates inventory values to measure the health of a business?a)Debt-to-Equity ratiob)Return on Investment (ROI)c)Inventory Turnover ratiod)Current RatioCorrect answer is option 'C'. Can you explain this answer?
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