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?

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

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

**Finally, calculate the capital turnover.**Divide the sales by the working capital to determine the turnover ratio.

## Related Terms

capital turnover calculator |

capital turnover formula |

how to calculate capital turnover |

capital turnover |

working capital turnover ratio |

working capital turnover |

capital turnover ratio |

working capital turnover ratio formula |

capital turnover ratio formula |

working capital turnover formula |

net working capital turnover |

working capital to sales ratio |

nwc turnover |

net working capital to sales ratio |

invested capital turnover |

working capital turns |

operating working capital turnover |

ideal working capital turnover ratio |

working capital to sales |

working capital turnover ratio meaning |

capital turnover ratio formula accounting |

negative working capital turnover ratio interpretation |

capital turnover ratio interpretation |

how to calculate working capital turnover ratio |

negative working capital turnover |

capital turnover rate |

capital turnover definition |

capital turnover equation |

net working capital to sales |

how to calculate working capital turnover |

formula of capital turnover ratio |

working capital turnover meaning |

net working capital to sales ratio formula |

capital turnover ratio meaning |

working capital turnover interpretation |

capital turnover meaning |

net working capital turnover formula |

wc turnover |

owned capital turnover ratio |

capital turns |

operating capital turnover |

working capital turnover definition |

invested capital turnover formula |

negative working capital turnover ratio |

working capital turnover ratio ideal |

total capital turnover ratio |

operating working capital to sales ratio |

working capital turnover ratio definition |

working capital days ratio |

invested capital turnover ratio |

formula for capital turnover ratio |

working capital turnover calculation |

beginning net operating working capital to sales |

capital assets turnover |

working capital to turnover ratio |

net operating working capital turnover |

standard working capital turnover ratio |

working capital turns formula |

capital turnover ratio is calculated as |

how to calculate net working capital to sales ratio |

working capital to sales ratio formula |

capital to average turnover ratio |

total capital turnover ratio formula |