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What ratio measures the number of times a company sells its average level of merchandise inventory during a​ period?

User Magisch
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Final answer:

The inventory turnover ratio indicates how often a company sells its average merchandise inventory in a period, distinct from market concentration measures like the four-firm concentration ratio and the HHI. option (A)

Step-by-step explanation:

The ratio that measures the number of times a company sells its average level of merchandise inventory during a period is known as the inventory turnover ratio.

This is different from the four-firm concentration ratio and the Herfindahl-Hirschman Index (HHI), both of which are used to measure the extent of competition in a market. However, if you are interested in how effectively a company is managing its inventory, the inventory turnover ratio is the key metric to look at.

User Andrea Richiardi
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