working capital turnover ratio indicates: group of answer choices the difference between current assets (excluding inventory) and current liabilities. the amount of working capital used in generating sales for the period. the bare minimum working capital that a company should have at any time. the amount of working capital used as a percentage of the assets owned by the company.

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Working capital turnover estimates how viable a business is at producing deals for each dollar of working capital put to utilize.A company's ability to generate more sales is indicated by a higher working capital turnover ratio, which is better.

What distinguishes working capital ratio from working capital?

The difference between a company's current assets and liabilities is referred to as working capital. These numbers are compared as a percentage using the working capital ratio. When determining a company's financial health, both metrics can be helpful.

The ratio of assets to liabilities, or how many times a company can pay off its current liabilities with its current assets, is shown by the working capital ratio. The calculation for the working capital ratio is: Current assets divided by current liabilities is the working capital ratio.

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