Understand the Activity Ratio - Investing in Stocks

The activity ratio shows how quickly a company can turn their inventory or what they sell into cash or sales. A company almost always wants to convert what it sells into cash because this leads to higher revenues and less expenses. I value this ratio very highly because it shows whether or not a company can sells thing with ease. If a company can't sell something with ease it means that they will incur more expenses in both time wasted and services bought to sell their goods. In other words if

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