Suppose Zach Kirkhorn, CFO of Tesla, Inc., an American multinational automotive and clean energy company headquartered in Austin, Texas, and Elon Musk, CEO and product architect of the company, are discussing Tesla's most recent financials. Elon notes that Tesla's most recent inventory ratio is $3\mathrm{.}14$ and wonders what it means. Which of the following would be Zach's best response?

Tesla sells its inventory an average of $3\mathrm{.}14$ times a year.

Tesla bought $3\mathrm{.}14$ times its COGS in inventory during the most recent quarter.

On average, Tesla takes $3\mathrm{.}14$ months to sell its entire inventory.

Tesla buys its inventory from suppliers on credit and pay them in full within $3\mathrm{.}14$ days.