Stock (inventory) turnover ratio measures how many times inventory is sold and replaced. A low ratio means inventory is not moving fast and therefore funds are blocked in stock, indicating over-investment in inventory or slow-moving goods.
A low stock turnover ratio indicates:
CUET UG 2022 — Accountancy Financial Statements
2022mcqeasy
A low stock turnover ratio indicates:
Official previous-year question
Held on 8 Aug 2022 · Verified 13 Jul 2026.
Options
- A
over investment in stock
- B
solvency position
- C
monopoly situation
- D
none of the above
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