Question
Which variable is compared to working capital when
calculating the working capital turnover ratio?Solution
The working capital turnover ratio is a financial ratio that measures how efficiently a company is using its working capital to generate sales. It is calculated by dividing net sales by the average working capital over a period of time. Working capital is the difference between a company's current assets and current liabilities. Current assets include things like cash, accounts receivable, and inventory, while current liabilities include things like accounts payable and short-term debt.
Which of the following can be the the code of ‘completed what the you’?
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