Question

if inventory 70000 working capital 100000 stock to working capital ratio would be​

Answer 1

Given:

The amount of inventory = 70000

Working Capital = 100000

To Find:

The stock to working capital ratio

Solution:

The stock to working capital ratio is a significant indicator of an enterprise's operational efficiency.

The formula for stock to working capital ratio is -

Inventory / Working capital

Thus, substituting the given values -

= 70000/100000

= 7/10

= 0.7

Answer: working capital ratio is 0.7