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Basic Question 3 of 8

With an inventory turnover rate of 10.0, over how many days does inventory turn over?

A. 10 days
B. 36.5 days
C. 365 days
Check Answer Previous Q Next Q Print

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
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

calculate and interpret activity, liquidity, solvency, and profitability ratios

describe relationships among ratios and evaluate a company using ratio analysis

CFA® 2025 Level I Curriculum, Volume 3, Module 11.