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Author Question: Why would a slow inventory turnover rate be a red flag in a financial statement analysis? (Read 290 times)

NguyenJ

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Why would a slow inventory turnover rate be a red flag in a financial statement analysis?
◦ The company may not be performing inventory counts.
◦ The company may have obsolete inventory.
◦ The company may have bad salespeople.
◦ The company may be understating inventory.


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Marked as best answer by NguyenJ on Feb 19, 2020

juliaf

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NguyenJ

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Reply 2 on: Feb 19, 2020
Thanks for the timely response, appreciate it


sailorcrescent

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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