The working capital turnover ratio can be determined by:
The working capital turnover ratio can be determined by (the cost of goods sold/working capital).
Working Capital Turnover Ratio: The relationship between working capital and cost of sales is shown under this ratio. Working capital means the difference between current assets and current liabilities. This ratio shows the velocity of utilization of working capital in the organization. The formula is
Working Capital Turnover Ratio = (cost of goods sold/working capital)