Working capital turnover is also referred to as net sales to working capital. Key Takeaways Working capital turnover measures how effective a business is at generating sales for every dollar of ...

A High Working Capital Turnover Ratio Indicates What?. ... Assume you have $2.1 million in net sales and $200,000 and $400,000 in working capital at the beginning and end of the year ...

The working capital turnover is calculated by taking a company's net sales and dividing them by its working capital. Since net sales cannot be negative, the turnover ratio can turn negative when a ...

Cash turnover: Net Sales/Net Working Capital (current assets less current liabilities)—reflects the company’s ability to finance current operations, the efficiency of its working capital ...

Analyse an income statement and financial position to assess business performance using these ratios: gross profit %, net profit percentage, inventory turnover, return on capital employed, and ...

Reviewed by Amy Drury Fact checked by Yarilet Perez The working capital ratio is a very basic metric of liquidity. It's meant to indicate how capable a company is of meeting its current financial ...

Working capital turnover = (Average Working Capital/ Net sales) * 365 When utilizing this ratio, it is important for one to see the long term pattern of the company. More important is how it fares ...

Out of 53 PSUs, only 14 had a working capital turnover ratio below 1. Prominent among them are Coal India , HMT , NMDC , MOIL , MTNL and Punjab Communications .