Author: Loans Mantri

The working capital turnover ratio is a financial metric used by businesses to assess their operational efficiency and management of working capital. It provides insights into how effectively a company utilizes its working capital to generate sales revenue. Here’s an explanation of the working capital turnover ratio, its benefits, and how to calculate it. Definition of Working Capital Turnover Ratio The working capital turnover ratio, also known as the net working capital turnover ratio, measures the efficiency of a company in using its working capital to support its sales or revenue-generating activities. It helps assess how well a business can…