Question

How to calculate working capital tunover ratio from gross profit ratio?

Answer 1

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.

Answer 2

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.