Working Capital Turnover Ratio Calculator

✖Net Sales are the number of sales generated by a company after the deduction of returns, allowances for damaged or missing goods, and any discounts allowed.ⓘ Net Sales [NS]			+10% -10%
✖Average Working Capital is the average amount of working capital available to the company during the same period.ⓘ Average Working Capital [Avg_WC]			+10% -10%

✖Working Capital Turnover Ratio is a financial metric that measures how efficiently a company utilizes its working capital to generate revenue.ⓘ Working Capital Turnover Ratio [WCTR]

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Formula

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Working Capital Turnover Ratio

Formula

`"WCTR" = ("NS"/"Avg"_{"WC"})*100`

Example

`"18"=("90000"/"500000")*100`

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Working Capital Turnover Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Working Capital Turnover Ratio = (Net Sales/Average Working Capital)*100
WCTR = (NS/Avg_WC)*100
This formula uses 3 Variables

Variables Used

Working Capital Turnover Ratio - Working Capital Turnover Ratio is a financial metric that measures how efficiently a company utilizes its working capital to generate revenue.
Net Sales - Net Sales are the number of sales generated by a company after the deduction of returns, allowances for damaged or missing goods, and any discounts allowed.
Average Working Capital - Average Working Capital is the average amount of working capital available to the company during the same period.

STEP 1: Convert Input(s) to Base Unit

Net Sales: 90000 --> No Conversion Required
Average Working Capital: 500000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

WCTR = (NS/Avg_WC)*100 --> (90000/500000)*100

Evaluating ... ...

WCTR = 18

STEP 3: Convert Result to Output's Unit

18 --> No Conversion Required

FINAL ANSWER

18 <-- Working Capital Turnover Ratio

(Calculation completed in 00.004 seconds)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has verified this Calculator and 50+ more calculators!

< 5 Turnover Ratios Calculators

Working Capital Turnover Ratio

Go Working Capital Turnover Ratio = (Net Sales/Average Working Capital)*100

Receivables Turnover Ratio

Go Receivables Turnover Ratio = Net Sales/Average Accounts Receivables

Fixed Asset Turnover Ratio

Go Fixed Asset Turnover Ratio = Net Sales/Average Net Fixed Assets

Inventory Turnover Ratio

Go Inventory Turnover Ratio = Cost of Goods Sold/Inventory

Total Asset Turnover

Go Total Asset Turnover = Sales/Total Assets

Working Capital Turnover Ratio Formula

Working Capital Turnover Ratio = (Net Sales/Average Working Capital)*100
WCTR = (NS/Avg_WC)*100

What is Working Capital Turnover Ratio?

The Working Capital Turnover Ratio is a financial metric used to measure how efficiently a company utilizes its working capital to generate revenue. Working capital represents the difference between a company's current assets and current liabilities, and it reflects the liquidity available for day-to-day operations. The Working Capital Turnover Ratio assesses how effectively this working capital is employed to generate sales.
A higher Working Capital Turnover Ratio indicates that the company is generating more revenue for each unit of working capital employed, suggesting efficient utilization of resources. Conversely, a lower ratio may indicate inefficiencies in managing working capital or difficulties in generating sales relative to the investment in current assets and liabilities.
Interpretation of the Working Capital Turnover Ratio varies across industries, and comparison with industry benchmarks or historical performance of the company is often necessary for meaningful analysis.

How to Calculate Working Capital Turnover Ratio?

Working Capital Turnover Ratio calculator uses Working Capital Turnover Ratio = (Net Sales/Average Working Capital)*100 to calculate the Working Capital Turnover Ratio, The Working Capital Turnover Ratio formula is defined as a financial metric that measures how efficiently a company utilizes its working capital to generate revenue. Working Capital Turnover Ratio is denoted by WCTR symbol.

How to calculate Working Capital Turnover Ratio using this online calculator? To use this online calculator for Working Capital Turnover Ratio, enter Net Sales (NS) & Average Working Capital (Avg_WC) and hit the calculate button. Here is how the Working Capital Turnover Ratio calculation can be explained with given input values -> 18 = (90000/500000)*100.

FAQ

What is Working Capital Turnover Ratio?

The Working Capital Turnover Ratio formula is defined as a financial metric that measures how efficiently a company utilizes its working capital to generate revenue and is represented as WCTR = (NS/Avg_WC)*100 or Working Capital Turnover Ratio = (Net Sales/Average Working Capital)*100. Net Sales are the number of sales generated by a company after the deduction of returns, allowances for damaged or missing goods, and any discounts allowed & Average Working Capital is the average amount of working capital available to the company during the same period.

How to calculate Working Capital Turnover Ratio?

The Working Capital Turnover Ratio formula is defined as a financial metric that measures how efficiently a company utilizes its working capital to generate revenue is calculated using Working Capital Turnover Ratio = (Net Sales/Average Working Capital)*100. To calculate Working Capital Turnover Ratio, you need Net Sales (NS) & Average Working Capital (Avg_WC). With our tool, you need to enter the respective value for Net Sales & Average Working Capital and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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