A higher inventory ratio indicates A. Better inventory management B. Quicker turnover C. Both A and B D. None of the above

The correct answer is: D. None of the above

A higher inventory ratio indicates that a company has more inventory on hand relative to its sales. This can be due to a number of factors, such as poor inventory management, a lack of demand for its products, or a strategic decision to carry more inventory in order to avoid stockouts.

A higher inventory ratio does not necessarily indicate better inventory management. In fact, it can often be a sign of the opposite. A company with a high inventory ratio may be holding onto

A higher inventory ratio also does not necessarily indicate quicker turnover. In fact, it can often be a sign of the opposite. A company with a high inventory ratio may be taking longer to sell its products, which can lead to lost sales and lower profits.

In conclusion, a higher inventory ratio does not necessarily indicate better inventory management or quicker turnover. It is important to consider all of the factors that can contribute to a company’s inventory ratio in order to determine whether it is a sign of a problem or not.