Frequently Asked Questions
  1. What does a high inventory turnover tell investors about a company?

    Inventory turnover is an important metric for evaluating how efficiently a firm turns its inventory into sales.
  2. What's the difference between an individual retirement account (IRA) and a certificate of deposit (CD)?

    Both individual retirement accounts (IRA) and certificates of deposit (CD) are useful savings instruments, but they have distinct rules that make them better suited for particular situations.
  3. Why is it sometimes better to use an average inventory figure when calculating the inventory turnover ratio?

    For a couple of key reasons, average inventory can be a better and more accurate measure when calculating the inventory turnover ratio.
  4. How do you calculate working capital?

    The formula for calculating working capital is straightforward, but lends great insight into the shorter-term health of a firm.
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