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Question
From the following information, calculate Working Capital Turnover Ratio:
| ₹ | |
| Cost of Revenue from Operations (Cost of Goods Sold) | 10,00,000 |
| Current Assets | 5,00,000 |
| Current Liabilities | 3,00,000 |
Sum
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Solution
Working Capital = Current Assets – Current Liabilities
= 5,00,000 – 3,00,000 = 2,00,000
Working Capital Turnover Ratio = `"Cost of Goods Sold"/"Working Capital" = 1000000/200000` = 5 times
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