Question

If the levels of inventory are expressed as a percentage of current assets, which of the...

If the levels of inventory are expressed as a percentage of current assets, which of the following statements is the most likely in terms of the inventory held by Telstra and Woolworths?

a. Telstra's inventory % would be slightly higher than Woolworths

b. Woolworths would have a slightly higher inventory % than Telstra

c. Their inventory percentages would be similar

d. Woolworths would have a much higher inventory % than Telstra

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Answer #1

As per some data published by Google

Telstra's inventory turnover is 7.07 time(as of june 2019) & Woolworths inventory turnover is 4.54 times (as of june 2019). So that answer is

A. Telstra's inventory is higher than Woolworth.

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