Above picture just shows the options, is not the final answer.

An increase in inventory O Increases days in inventory regardless of what happens to cost of goods sold and revenues May increase or decrease days in inventory, depending on what happens to cost of goods sold during the same period of operations Decreases days in inventory regardless of what happens to cost of goods sold and revenues Not enough information Ratios are an important way of measuring management effectiveness. Match the following ratios to what they are intended to measure. Revenue growth rate Efficiency Gross margin, operating margin, and profit margin Growth Interest coverage and debt-to-equity Leverage Asset turnover, PP&E turnover, and sales-to-labor Profitability