Working Capital Turnover Ratio Calculator

Your details

Two-period mode uses opening and closing balances to compute the average, which smooths out seasonal swings. Single-period uses one balance sheet date.
Total net revenue for the period: gross sales minus returns, allowances and discounts. Use the same period length as your balance sheet dates.
USD
Total current assets at the beginning of the period (cash, receivables, inventory, prepaid expenses, etc.).
USD
Total current assets at the end of the period (same line items, most recent balance sheet).
USD
Total current liabilities at the beginning of the period (accounts payable, short-term debt, accrued expenses, etc.).
USD
Total current liabilities at the end of the period (same line items, most recent balance sheet).
USD
Working capital turnover ratioEfficient range
4.71x

Net sales per dollar of average working capital

Average working capital425,000USD
Average current assets850,000USD
Average current liabilities425,000USD
Sales generated per $1 of working capital4.71USD
4.71 x
Very low<1Below average1-3Efficient3-5High5-10Very high10+

Working capital turnover ratio: 4.71x

  • A ratio of 4.71x falls in the generally efficient range (3-5x is often cited as the target for many sectors). The business is converting its working capital into revenue at a healthy pace.
  • Your average working capital of $425,000 represents approximately 78 days of revenue coverage.
  • Always compare the ratio to your industry peers. Capital-intensive manufacturers often run below 3x, while service businesses and online retailers can comfortably exceed 10x.

Next stepTrack the ratio each period alongside your current ratio and quick ratio to build a complete picture of short-term financial health.

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