Capital Turnover Calculator

Enter the total net sales and average working capital into the calculator to determine the capital turnover ratio.

Capital Turnover Formula

The following formula is used to calculate a working capital turnover ratio,

CTR = NS / AVC

  • Where CTR is the capital turnover ratio
  • NS is the net sales
  • AVC is the average working capital

FAQ

What is capital turnover?

Capital turnover is a measure of the rate at which the change in working capital effects the change in sales. In other words how quickly a turnover the sales to working capital have.


Example

How to calculate capital turnover ratio?

  1. First, determine the net sales.

    Over a given period of time, calculate the total net sales revenue generated.

  2. Next, determine the average working capital.

    Over the same time period, calculate the average amount of working capital.

  3. Finally, calculate the capital turnover.

    Divide the sales by the working capital to determine the turnover ratio.


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capital turnover formula

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