Unformatted text preview: can not afford to turn inventory less often due to their lower gross margins. 3) Is Amazon’s turnover favorable or unfavorable, based on what we read in the article on inventory turnover? This may be unfavorable because the article states that lower gross margins require higher turnovers. Those with higher gross margins are able to afford to turn their inventory less often. This tells me that Amazon is not in a good gross margin compared to some other companies. However, it may also be favorable because the more inventory turnovers, the less the cost of investment in inventory. This saves that extra money that can be used for something else in the company. Wendy Eller...
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- Fall '09
- Balance Sheet, turnover, lower gross margins