Measures how efficiently a company uses its working capital to generate sales.

What it Measures ?

How well we use our short-term funds to generate sales.

Relevant StakeHolders 

CFO, Finance Manager

In-depth Use Case / Real-world Example

Working Capital Turnover is calculated by dividing net sales by average working capital. If a company has ₹1,000,000 in sales and ₹200,000 in working capital, the turnover ratio is 5. A high ratio indicates efficient use of working capital, while a low ratio suggests inefficiency in asset utilization.