Sales to Net Working Capital Ratio Calculator

Calculate Sales to Net Working Capital Ratio (SNWCR)



Formula

The formula to calculate the Sales to Net Working Capital Ratio (SNWCR) is:

\[ SNWCR = \frac{S}{NWC} \]

Where:

What is Sales to Net Working Capital Ratio?

The Sales to Net Working Capital Ratio is a financial metric that measures how efficiently a company is using its net working capital to generate sales. A higher ratio indicates that the company is effectively using its working capital to support sales activities, while a lower ratio may suggest inefficiencies.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Sales to Net Working Capital Ratio:

\[ SNWCR = \frac{1,000,000}{200,000} = 5 \]

The Sales to Net Working Capital Ratio is 5.