![]() Net sales refer to a company's revenue, which is calculated by subtracting the cost of goods sold from the total sales. Here’s an explanation of how to calculate the working capital turnover ratio in 3 steps: Divide net annual sales by average working capital: At this point, you’ll find the working capital turnover ratio.Īn Example Calculation Of The Working Capital Ratio.Or you can calculate the number by subtracting the cost of returns, allowances, and discounts from your company’s gross sales. Calculate net annual sales: Find the net annual sales for your company by looking in your books.You can find this number at multiple points during the year to find an average. ![]()
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