Working Capital Turnover Law and Legal Definition
Working Capital Turnover (WCT) is a measurement comparing the depletion of working capital to the generation of sales over a given period. It shows how efficiently Working Capital (WC) is employed, i.e., it measures how efficiently the business is using its available assets. WCT measures the amount of net revenue generated per monetary unit of Working Capital. It varies widely by industry; therefore it is best to compare WCT to industry averages. Formula: Net Revenue / (Current Assets - Current Liabilities).