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What is Working Capital Turnover Ratio? - Accounts

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प्रश्न

What is Working Capital Turnover Ratio?

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उत्तर

The Working Capital Turnover Ratio determines how well a company uses its working capital (current assets minus current liabilities) to produce revenue. It represents how many times working capital is required to support sales over a given time period, which is often a year.

The formula for the Working Capital Turnover Ratio is:

Working Capital Turnover Ratio = `"Net revenue from Operations"/"Working Capital"`

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पाठ 14: Ratio Analysis - SHORT ANSWER QUESTIONS [पृष्ठ १४.१११]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
पाठ 14 Ratio Analysis
SHORT ANSWER QUESTIONS | Q 63. | पृष्ठ १४.१११
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