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can we use inventory holding period ( (inventory/cost of sales) *100) in ratio analysis rather than inventory turnover ratio(cost of sales/inventory) ?
Of course you can – if you can use that result in a meaningful interpretative way
The same goes for any ratio – if you can use that result in a meaningful way, it’s perfectly acceptable
If you were to divide the carrying value of patents and intangibles by the figure for debenture interest expense what would you get? I have no idea … but if you believe that you can get something sensible from it, then it’s a valid ratio to use
OK?
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