working capital turnover ratio meaning

Liquidity Current ratio also known as the working capital ratio The formula for calculating this ratio is Current assets OR Current assets. Another more popular formula calculates the acid test ratio first by deducting inventory from the total current assets Current Assets Current assets refer to those short-term assets which can be efficiently utilized for business operations sold for immediate cash or liquidated within a year.


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1 Average Stock Opening stock closing stock 2 2 Owners Equity Capital at the beginning of the year Accounting ratios.

. It comprises inventory cash cash equivalents marketable securities accounts receivable etc.


Total Assets Turnover This Is A Very Straight Forward Ratio It Indicates The Company S Capability To Generate Rev Fixed Asset Historical Data Financial Ratio


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