State the meaning of working capital turnover ratio. Give the formula of calculating working capital turnover ratio.
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BREAKING DOWN Working Capital Turnover. 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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BREAKING DOWN Working Capital Turnover. 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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