A ___ Working capital turnover ratio indicates that management is being extremely efficient in using a firm's short-term assets and liabilities to support sales.

Low

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High

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Equal to 1

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None of these

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Solution

The correct option is B
High

A High Working capital turnover ratio indicates that management is being extremely efficient in using a firm's short-term assets and liabilities to support sales.

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A ______ working capital turnover ratio indicates that a business is investing in too many accounts receivable and inventory assets to support its sales.

Q. Revenue from Operations: Cash Sales ₹ 5,00,000; Credit Sales ₹ 6,00,000; Sales Return ₹ 1,00,000. Current Assets ₹ 3,00,000; Current Liabilities ₹ 1,00,000. Calculate Working Capital Turnover Ratio.

Determine working capital turnover ratio if, current assets is Rs 1,50,000, current liabilities is Rs 1,00,000 and revenue from operations is Rs 3,00,000.

Q. From the following calculate:

(a) Current Ratio; and
(b) Working Capital Turnover Ratio.

		₹
(i)	Revenue from Operations	1,50,000
(ii)	Total Assets	1,00,000
(iii)	Shareholders' Funds	60,000
(iv)	Non-current Liabilities	20,000
(v)	Non-current Assets	50,000

Q. Following is the information given by X ltd. for the year ended 31st March, 2021. Particulars Amount (₹)

Sales Net Profit Cost of Sales Long-term Debts Creditors Average Inventory Current Assets Fixed Assets Current Liabilities Net Profit before Interest and Tax	50,40,000 7,20,000 38,40,000 18,00,000 4,00,000 16,00,000 15,20,000 28,80,000 12,00,000 16,00,000

Working capital turnover ratio will be:

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A ___ Working capital turnover ratio indicates that management is being extremely efficient in using a firm's short-term assets and liabilities to support sales.

The correct option is B High A High Working capital turnover ratio indicates that management is being extremely efficient in using a firm's short-term assets and liabilities to support sales.

The correct option is B
High

A High Working capital turnover ratio indicates that management is being extremely efficient in using a firm's short-term assets and liabilities to support sales.