Working Capital Turnover Calculation Example What is Working Capital Turnover? The Working Capital Turnover is a ratio that compares the net sales generated by a company to its net working capital (NWC). How to Calculate Working Capital Turnover The working capital turnover ratio compares a comp...
Working capital turnover is a measure to define how well the company has made an investment in the company’s working capital for funding the daily operations and sales. Generally, a higher ratio is better and suggests that the company does not require more funds. Similarly, a lower ratio de...
Let’s take an example to understand the Working Capital Turnover Ratio calculation in a better manner. You can download this Working Capital Turnover Ratio Excel Template here –Working Capital Turnover Ratio Excel Template Example #1 Calculate the working capital turnover ratio of the Company ABC...
Working capital turnover refers to annual sales. 净额与营运资金之比,反映营运资金在一年内的周转次数。它是按照建立现代企业制度的要求,为了全面反映企业经济效益状况而设立的一个重要指标。 The calculation formula of working capital turnover rate is as follows: Working capital turnover = net sales income ...
What is the Working Capital Turnover Ratio? The Working Capital Turnover Ratio indicates how effective a company is at using its working capital. In other words, it displays the relationship between the funds used to finance the company’s operations and the revenues the company generates as a...
美 英 un.流动资本周转率 英汉 un. 1. 流动资本周转率
百度试题 题目4-13 working capital turnover A.单位成本法 B.加权平均成本法 C.营运资本周转率相关知识点: 试题来源: 解析 C working capital turnover:“营运资本周转率”。反映公司营运资本的周转速度反馈 收藏
Because long-term debt is not considered in the calculation, it can effectively increase working capital. However, an increase in debt can affect a contractor’s access to traditional financing or surety bonds. Creditors often consider an applicant’s working capital to debt ratio to determine thei...
The working capital turnover ratio is also referred to as net sales to working capital. It indicates a company’s effectiveness in using its working capital. The working capital turnover ratio is calculated as follows: net annual sales divided by the average amount of working capital during the...
A working capital turnover ratio only considers a company’s financial characteristics. While financial variables are crucial, non-financial elements can also have an impact on a company’s financial health. The working capital turnover ratio calculation ignores disgruntled employees or economic downturns...