working capital turnover ratio meaning

The working capital turnover ratio measures a companys ability to use working capital to generate sales. The key objective of working capital management is to ensure a smooth operating cycle.


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In the calculation we divide the revenue figure by the average working capital.

. The primary objectives of working capital management include the following. Objectives of Working Capital Management. We can find the revenue numbers on the top row of.

It means the cycle should never stop for the lack of liquidity whether it is for buying raw material salaries tax payments etc. Working capital turnover.


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