True, days' sale in inventory is a useful measure in evaluating inventory liquidity.
The current metric will alter based on how quickly you can sell your inventory. If you can quickly sell inventory for cash without losing any of its value, it will increase your liquidity. If it takes a while to sell your inventory, liquidity is not increased. Inventories are less liquid than other current assets.
The least liquid asset is inventory because it can take years or never to convert inventory to cash. Fixed assets are even less liquid than inventory. However, inventory is still less liquid than other short-term investments like cash and cash equivalents, despite being much more liquid than assets like land and equipment.
To learn more about inventory: https://brainly.com/question/25947903
#SPJ4
