Another important Activity Ratio to understand the efficiency with which the company is run, is Working Capital Turnover Ratio.
This ratio tries to build a relationship between the company’s Revenue and Working Capital.
The formula for this ratio is
(Net Sales / Average Working Capital) *100
To understand more about this topic in greater depth, visit Working Capital Turnover Ratio formula and interpretation.
- This template helps you to calculate the ratio easily.
- The file has the Income Statement and Balance Sheet template
- The main calculation sheet is linked to the financials such that fetches the required numerator and denominator as required by the formula.
- Although we have used financials of Walmart Inc. to illustrate the calculation, you may use the financials of any company.