Loading...
CFA Level 1
Corporate Finance

Improving Inventory Turnover Ratio

Medium Working Capital Management Inventory Management

A company is assessing its inventory management practices to determine how effectively it is using its resources. The firm has noted that its current inventory turnover ratio is considerably lower than the industry average. Management is concerned about the implications this could have on their working capital. Based on these observations, the CFO is considering options to improve inventory efficiency.

Which of the following strategies would most likely help the company enhance its inventory turnover ratio?

Hint

Submitted6.0K
Correct5.5K
% Correct91%