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You are evaluating the inventory management efficiency of two retail companies, RetailMart and SuperStore, in the fashion industry. Requirements: RetailMart had cost of goods sold
You are evaluating the inventory management efficiency of two retail companies, RetailMart and SuperStore, in the fashion industry.
Requirements:
- RetailMart had cost of goods sold (COGS) of $200 million and an average inventory of $40 million for the fiscal year 2023. SuperStore recorded COGS of $250 million and an average inventory of $50 million during the same period.
- Calculate the inventory turnover ratio for both companies.
- Discuss which company demonstrates better inventory turnover efficiency.
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