The net working capital turnover ratio is measured as:
A) Sales divided by net working capital.
B) Sales minus net working capital.
C) Sales times net working capital.
D) Net working capital divided by sales.
E) Net working capital plus sales.

Question

Quizplus · Accepted Answer

The net working capital turnover ratio is calculated by dividing sales by net working capital, which measures how efficiently a company uses its working capital to generate sales.

The Net Working Capital Turnover Ratio Is Measured As