Which ratio helps determine how efficiently a company manages its inventory?

Which ratio helps determine how efficiently a company manages its inventory?

کون سا تناسب اس بات کا تعین کرنے میں مدد کرتا ہے کہ کمپنی اپنی انوینٹری کا کتنا موثر انداز میں انتظام کرتی ہے؟
Explanation

Inventory turnover ratio = Cost of Goods Sold ÷ Average Inventory.

It shows how effectively a company sells and replaces inventory during a period.