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प्रश्न
What is indicated by High Inventory Turnover Ratio?
What does High Inventory Turnover Ratio indicates?
लघु उत्तर
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उत्तर
When the inventory turnover ratio is high, it shows that the inventory is being converted into revenue from operations at a faster rate. In the case that this ratio has improved, it indicates that either the same volume of Revenue from Operations has been maintained with a smaller investment in inventory or that the volume of Revenue from Operations has increased without an increase in inventory.
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