Which of the following ratios would be most useful to obtain quantitative information on the company’s inventory management processes?

Cistero Corporation operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories. A recent operational study revealed that a large part of the company’s expenses are due to of ineffective inventory management. Which of the following ratios would be most useful to obtain quantitative information on the company’s inventory management processes?

a. activity ratio

b. profitability ratio

c. liquidity ratio

d. leverage ratio

e. solvency ratio

 

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