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Supply Chain Management Professional (SCMP) · Question

Which measure assesses the speed at which a company converts its inventory into sales?

The Inventory Turnover Ratio indicates how many times a company has sold and replaced inventory during a given period. A higher ratio generally means more effic

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Question: Which measure assesses the speed at which a company converts its inventory into sales?

Answer options: ✅ Inventory Turnover Ratio

  • Days Inventory Outstanding (DIO)
  • Return on Assets (ROA)
  • Cash Conversion Cycle (CCC)

Correct answer: Inventory Turnover Ratio

Explanation: The Inventory Turnover Ratio indicates how many times a company has sold and replaced inventory during a given period. A higher ratio generally means more efficient inventory management.

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