Thyme,Inc'S Inventory Turnover Ratio Has Been Approximately 6 Times Per

Multiple Choice

Thyme,Inc.'s inventory turnover ratio has been approximately 6 times per year over the past few years.This year Thyme decided to reduce the amount of inventory it keeps on hand.What effect will this new policy have on its inventory turnover ratio for the current year?

A) The ratio will increase.
B) The ratio will decrease.
C) The inventory turnover ratio will stay the same.
D) This is a trick question.The amount of inventory on hand has nothing to do with a company's inventory turnover ratio.