___ is a ratio which measures how efficiently a company is using its working capital to support a given level of sales.
Working capital turnover ratio
Inventory turnover ratio
Debt equity ratio
None of these
Working capital turnover ratio is a ratio which measures how efficiently a company is using its working capital to support a given level of sales.
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.
A ______ working capital turnover ratio indicates that a business is investing in too many accounts receivable and inventory assets to support its sales.
Company A has Rs. 12 Lakhs of net sales over the past 12 months. The average working capital during that time was Rs. 2 Lakhs. Calculate Working capital Turnover ratio.