Explain Working Capital Turnover Ratio. What does it indicate?

Explain Working Capital Turnover Ratio. What does it indicate?


Working Capital Turnover Ratio indicates that working capital i.e difference between current assets and current liabilities is turned over in the form of sales more number of times. A high working capital turnover ratio indicated the capability of the organization to achieve maximum sales with the minimum investment in the working capital.

Formula to calculate working capital turnover ratio = Net Sales/ Working Capital
What is Inventory/Stock Turnover Ratio? What does it indicate?
Formula to calculate inventory turnover ratio = Cost of goods sold/ Average inventory…
What is Debtors Turnover Ratio? What propositions should be kept in mind while working with them?
Debtors Turnover Ratio indicates the number of times average debtors are turned over during a year
What is Capital Turnover Ratio? What does it indicate?
Capital Turnover Ratio indicates the efficiency of the organization with which the capital employed is being utilized…
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