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The inventory turnover ratio is annual cost of sales / average inventory. If cost of sales decreases while average inventory remains the same, the ratio will decrease, not increase.
The receivables turnover ratio is net credit sales / average accounts receivable. If sales decrease while average inventory remains the same, the ratio will decrease, not increase.
The inventory turnover ratio is annual cost of sales / average inventory. If cost of sales decreases while average inventory remains the same, the ratio will decrease, not increase. The receivables turnover ratio is net credit sales / average accounts receivable. If sales decrease while average inventory remains the same, the ratio will decrease, not increase.
The inventory turnover ratio is annual cost of sales / average inventory. If cost of sales decreases while average inventory remains the same, the ratio will decrease. The receivables turnover ratio is net credit sales / average accounts receivable. If sales decrease while average accounts receivable increases, the ratio will decrease.