seem to have consistent as well as similar sales/ account receivables ratios. This
business segment pins Corning against all Japanese firms whose ratios appear to low
compared to most of the industry. Corning's telecommunications segment's ratio alone
is almost as high as the other firms in the industry. This may indicate that Corning's
telecommunications segment is very liquid compared to that of the larger segments or
maybe that the Japanese firms hold a lot of their sales on receivables or credit.
Inventory turnover, calculated by cost of goods sold divided by inventory, allows
firms to measure how effective a firm is in selling and replacing inventory each year.
The inventory turnover ratio is helpful when estimating the liquidity of a firm's inventory
and the accuracy of the current ratio since inventory is included in that ratios