Asked by Talyn Rhodes on Jul 16, 2024
Verified
Days' sales in inventory of car dealerships are generally higher when compared to grocery stores.
Days' Sales in Inventory
A financial metric that shows the average duration it takes for a company to turn its inventory into sales.
Car Dealerships
Businesses specialized in selling new or used cars, often also offering maintenance services and financing options.
Grocery Stores
Retail stores specializing in the sale of food and household items.
- Conduct evaluations and analyses of financial metrics to measure a firm's fiscal achievements.
Verified Answer
VN
Vanessa NaredoJul 17, 2024
Final Answer :
True
Explanation :
Car dealerships typically have a higher days' sales in inventory because cars are high-value items that take longer to sell, whereas grocery stores have fast-moving consumer goods that sell and get restocked frequently.
Learning Objectives
- Conduct evaluations and analyses of financial metrics to measure a firm's fiscal achievements.
Related questions
The Most Effective Methods of Directly Evaluating the Financial Performance ...
A Firm Has a Lower Inventory Turnover, a Longer ACP ...
If a Firm's Ratio of Stockholders' Equity/total Assets Is Lower ...
The Financial Statements of Burnaby Mountain Trading Company Are Shown ...
Du Pont Analysis Breaks a Firm's ROE into Components Such ...