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Inventory Turnover Ratio and Days Inventory Outstanding (DIO) : A company has cost of goods sold (COGS) of $500,000 and an average inventory of $125,000.
- Inventory Turnover Ratio and Days Inventory Outstanding (DIO): A company has cost of goods sold (COGS) of $500,000 and an average inventory of $125,000. Calculate the inventory turnover ratio and the days inventory outstanding (DIO). Analyze what these metrics indicate about the company’s inventory management efficiency and cash flow.
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
