Final answer:
Inventory turnover is an internal forward-looking metric for a firm. It measures how quickly a company can sell its inventory and is calculated by dividing the cost of goods sold by the average inventory.
Step-by-step explanation:
The correct answer is D) inventory turnover. Inventory turnover is an internal forward-looking metric for a firm. It measures how quickly a company can sell its inventory and is calculated by dividing the cost of goods sold by the average inventory. A high inventory turnover ratio indicates that a company is efficiently managing its inventory and generating sales. For example, if a company has an inventory turnover ratio of 4, it means that the company sells and replaces its inventory four times a year.