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What is high stock turnover ratio
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What is high stock turnover ratio Related: NCERT Solution - Chapter 5...
HIGH STOCK turnover ratio implies either strong sales or ineffective buying (the company buys too often in small quantities, therefore the buying price is higher).A high inventory turnover ratio can indicate better liquidity, but it can also indicate a shortage or inadequate inventory levels, which may lead to a loss in business.
High inventory levels are usual unhealthy because they represent an investment with a rate of return of zero. It also opens the company up to trouble if the prices begin to fall.
High inventory levels are usual unhealthy because they represent an investment with a rate of return of zero. It also opens the company up to trouble if the prices begin to fall.
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What is high stock turnover ratio Related: NCERT Solution - Chapter 5 : Accounting Ratios -1, Class 12, Accountancy
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What is high stock turnover ratio Related: NCERT Solution - Chapter 5 : Accounting Ratios -1, Class 12, Accountancy for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is high stock turnover ratio Related: NCERT Solution - Chapter 5 : Accounting Ratios -1, Class 12, Accountancy covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is high stock turnover ratio Related: NCERT Solution - Chapter 5 : Accounting Ratios -1, Class 12, Accountancy.
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