- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 11. Financial Analysis Techniques
- Subject 2. Activity Ratios
CFA Practice Question
With an inventory turnover rate of 10.0, over how many days does inventory turn over?
B. 36.5 days
C. 365 days
A. 10 days
B. 36.5 days
C. 365 days
Correct Answer: B
With an inventory turnover rate of 10.0, inventory turns over every 36.5 days. (365 days/10.0 turnover rate = 36.5 days)
User Contributed Comments 9
| User | Comment |
|---|---|
| Stygian | That's not right! Inventory Turnover(IT) = COGS / Avg. Inventory. Days of Inventory on Hand(DOH) = 365/IT. Analyst Notes should delete or correct the question. |
| surjoy | Hello??? DOH is being asked here..question is correct. |
| Fotsta | Read again the ratios. Q is right!!!! |
| Raok | Stygian give up on taking the cfa, save u some money |
| Dmoney | @Raok, no need for insults. I doubt you get every question right.. |
| ldfrench | LOLOL, @Raok, YOU GOT HIM!!!!! |
| leon121 | @Raok...he will continue studying cfa cuz if he learned something...it's a sunk cost. |
| rabihCH | hilarious study group! :) |
| Inaganti6 | There's IFRS, US GAAP, then there's Stygian . haha |