A fundamental concern of asset management ratios is whether the firm is carrying too much or too little of a particular asset. If the firm's inventory turnover ratio is lower than the industry's average, possible explanations include: the firm is holding inventory balances that are ____ than that held by the average firm in the industry; or for some as-yet-unidentified reason, the firm's sales are not commensurate with those generated by the average firm in the industry. Determining which outcome actually exists, and whether this outcome is good or bad for the firm involves the art, rather than the science, of ratio-analysis interpretation. Nikola Motors has a quick ratio of 2.00; $24, 750 in cash; $13, 750 in accounts receivable; some inventory; total current assets of $55,000; and total current liabilities of $19, 250. in its most recent annual report, Nikola reported annual sales of $700,000 and a cost of goods sold equal to 65% of annual sales. How many times is Nikola Motors selling and replacing its inventory? 27.58x 0.35x 42.42x 30.34x the inventory turnover ratio across companies in Nikola's industry is 31.03. Based on this information, which of the following statements is true for Nikola Motors? Nikola Motors is holiday less inventory per dollar of COGS compared to the industry average. Nikola Motors is holding more inventory per dollar of COGS compared to the industry average