An analyst observes a decrease in a companys inventory turnover. Which of the following would most likely

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An analyst observes a decrease in a company’s inventory turnover. Which of the following would most likely explain this trend?

A. The company installed a new inventory management system, allowing more efficient inventory management.

B. Due to problems with obsolescent inventory last year, the company wrote off a large amount of its inventory at the beginning of the period.

C. The company installed a new inventory management system but experienced some operational difficulties resulting in duplicate orders being placed with suppliers.

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International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

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