SALES TO WORKING CAPITAL | |||||||||
Definition | |||||||||
Net sales / Average working capital (in %) Average working capital is taken over the latest 2 years. | |||||||||
Comment | |||||||||
Generally, a substantial sales volume requires large working capital. Many factors can influence this ratio, such as the prevailing velocity of current assets and current liabilities among organizations. Even in a particular business, it is therefore difficult to establish a standard. | |||||||||
Reference | |||||||||
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