Course Solutions Uncategorized (Answered) : If a company wants to borrow money, banks look at a bunch of ratios; will having less stock out in the market affect any of thos

(Answered) : If a company wants to borrow money, banks look at a bunch of ratios; will having less stock out in the market affect any of thos

If a company wants to borrow money, banks look at a bunch of ratios; will having less stock out in the market affect any of those ratios?

Expert Answer


Having Less Stock out in market means increased inventory of finished goods company is holding.

And increase inventory will impact, inventory turnover ratio unfavorably.

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