XYZ Company Has an Inventory Turnover of 20 Times Per

Multiple Choice

XYZ Company has an inventory turnover of 20 times per year.The industry average is 5.0 times per year.What does a high inventory turnover mean?

A) The company has too much inventory on hand.
B) The company may have obsolete inventory on hand.
C) The company may not be keeping enough inventory on hand which can lead to lost sales.
D) The company is having a difficult time selling the inventory.