Finance & Businessfreq · 1via Dusty Flow

Working Capital Turnover

/ˈwɜːrkɪŋ ˈkæpɪtl ˈtɜːnəʊvər/noun
ELI5 mode

Working capital turnover is a key financial ratio that measures how efficiently a company uses its short-term assets and liabilities to generate sales revenue. It highlights operational agility by showing how many times working capital is converted into sales over a period, often revealing strengths in cash flow management. In today's fast-paced business environment, a high ratio can indicate lean operations but might also signal overextension if not monitored carefully.

AI-generated·

Verified sources

Your usage frequency

1 / 917