Working Capital Turnover Ratio Formula

Given below net working capital turnover formula and it is calculated based on the net sales and net working capital. The calculation of net working capital turnover is usually made on the average working capital during an annual or 12-month period. It helps in analyzing the firm's working efficiency. Working capital turnover ratio formula is defined as (Net Sales / Net Working Capital). Also, you can refer the online calculator provided below link for ease calculations.

Net Working Capital Turnover Formula


Net Working Capital Turnover Ratio = Net Sales / Net Working Capital

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This net working capital turnover ratio formula helps you learn and analyses the effectiveness of a company using the short-term assets. As working capital has direct relationship with cost of goods sold, the ratio provides how efficiently the working capital is being used.

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