The Working Capital Turnover Ratio is a critical financial measure that assesses how effectively the working capital of a company is utilized to generate revenue. Calculating this ratio involves dividing the annual sales revenue by the working capital of the business. This ratio serves as a tool for assessing the operational efficiency of a business, determining any crisis and necessary improvements, and ensuring the growth of the organization.

The Working Capital Turnover Ratio provides valuable insights for financial analysts, investors, and creditors, who use it to comprehend the financial health of a business and evaluate its ability to secure and pay off debts. Regularly calculating this ratio is crucial for businesses to assess their operations effectiveness, learn from the insights, and make appropriate investment decisions.