Advertisements
Advertisements
Question
What relationship will be established to study:
Working Capital Turnover
Answer in Brief
Advertisements
Solution
Working Capital Turnover ratio is computed to determine how efficiently the working capital is utilised in making sales. It establishes the relationship between net sales and working capital.
Working Capital Turnover Ratio = `"Net Sales"/"Working Capital"`
Net Sales = Total sales - Sales return
Working Capital = Current Assets - Current Liabilities
shaalaa.com
Is there an error in this question or solution?
