Final answer:
A company typically prefers a higher inventory turnover ratio, as it indicates efficient sales and inventory management, contrasting a lower ratio that may signal overstocking or poor sales.
Step-by-step explanation:
A company would prefer that its inventory turnover ratio be higher rather than lower. The inventory turnover ratio is an important metric that indicates how many times a company has sold and replaced inventory over a set period. A higher turnover ratio implies that the company is selling goods more quickly, which is generally a sign of operational efficiency and strong sales performance. Conversely, a lower turnover ratio may suggest overstocking, obsolescence, or weak sales.