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Working Capital Turnover Ratio Formula

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Working Capital Turnover Ratio is a financial metric that measures how efficiently a company utilizes its working capital to generate revenue. Check FAQs

WCTR = (\frac{NS}{Avg WC}) \cdot 100

WCTR - Working Capital Turnover Ratio?NS - Net Sales?Avg_WC - Average Working Capital?

Working Capital Turnover Ratio Example

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Here is how the Working Capital Turnover Ratio equation looks like with Values.

Here is how the Working Capital Turnover Ratio equation looks like with Units.

Here is how the Working Capital Turnover Ratio equation looks like.

18 = (\frac{90000}{500000}) \cdot 100

18 = (\frac{90000}{500000}) \cdot 100

18 = (\frac{90000}{500000}) \cdot 100

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Working Capital Turnover Ratio Solution

Follow our step by step solution on how to calculate Working Capital Turnover Ratio?

FIRST Step Consider the formula

WCTR = (\frac{NS}{Avg WC}) \cdot 100

Next Step Substitute values of Variables

∴

WCTR = (\frac{90000}{500000}) \cdot 100

Next Step Prepare to Evaluate

∴

WCTR = (\frac{90000}{500000}) \cdot 100

LAST Step Evaluate

∴

WCTR = 18

Working Capital Turnover Ratio Formula Elements

Variables

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.

Symbol: WCTR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Working Capital Turnover Ratio

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.

Symbol: NS

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Net Sales

Average Working Capital

Average Working Capital is the average amount of working capital available to the company during the same period.

Symbol: Avg_WC

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Average Working Capital

Other formulas in Operating and Turnover Ratios category

Go Capital Intensity

CI = \frac{TAA}{R}

Go Inventory Turnover Ratio

ITR = \frac{COGS}{In}

Go Total Asset Turnover

ATO = \frac{S}{TA}

Go Fixed Asset Turnover Ratio

FAT = \frac{NS}{ANFA}

How to Evaluate Working Capital Turnover Ratio?

Working Capital Turnover Ratio evaluator uses Working Capital Turnover Ratio = (Net Sales/Average Working Capital)*100 to evaluate 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 evaluate Working Capital Turnover Ratio using this online evaluator? To use this online evaluator for Working Capital Turnover Ratio, enter Net Sales (NS) & Average Working Capital (Avg_WC) and hit the calculate button.

FAQs on Working Capital Turnover Ratio

What is the formula to find Working Capital Turnover Ratio?

The formula of Working Capital Turnover Ratio is expressed as Working Capital Turnover Ratio = (Net Sales/Average Working Capital)*100. Here is an example- 18 = (90000/500000)*100.

How to calculate Working Capital Turnover Ratio?

With Net Sales (NS) & Average Working Capital (Avg_WC) we can find Working Capital Turnover Ratio using the formula - Working Capital Turnover Ratio = (Net Sales/Average Working Capital)*100.

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Working Capital Turnover Ratio Formula

Working Capital Turnover Ratio Example

Working Capital Turnover Ratio Solution

Working Capital Turnover Ratio Formula Elements

Other formulas in Operating and Turnover Ratios category

How to Evaluate Working Capital Turnover Ratio?

FAQs on Working Capital Turnover Ratio

Variable Name