Syarikat Pengedar National Corporation (M) Sdn. Bhd is a retail company that sells electronic products. The company has been experiencing a decline in its profitability and wants to analyze its inventory management practices. As an analyst, you are tasked with calculating and interpreting the inventory turnover ratio to provide insights and recommendations for improvement. The following information is available for Syarikat Pengedar National Corporation (M) Sdn. Bhd.
a Cost of Goods Sold(COGS) for the year: RM2,500,000. o Average Inventory value: RM500,000
Calculate the inventory turn over ratio and provide an interpretation of the result.
2.Based on the interpretation, suggest possible actions the company can take to improve its inventory management.