How to calculate working capital tunover ratio from gross profit ratio?
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The working capital turnover ratio is calculated by dividing net annual sales by the average amount of working capital – current assets minus current liabilities — during the same 12-month period.
For example,
Company A has $12 million of net sales over the past 12 months.
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Hello Mate,
The working capital turnover ratio is calculated by dividing net annual sales by the average amount of working capital – current assets minus current liabilities — during the same 12-month period.
For example,
Company A has $12 million of net sales over the past 12 months.
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