Name: Working Capital Turnover

Definition: Working capital turnover shows how efficiently the company uses its short-term resources — like cash, inventory, and receivables — to generate sales. Higher turnover means the company squeezes more sales from its working capital. Lower turnover may indicate inefficient inventory, slow collections, or too much short-term capital tied up unnecessarily.

Interpretation:
• In '2021', AAP's working capital turnover was 10.04, showing how efficiently working capital is deployed. Industry average for Auto & Home Supply Stores in '2021' stood at 2.04.
• In '2022', AAP's working capital turnover was 10.83, showing how efficiently working capital is deployed. The increase since '2021' reflects strengthening financial performance. Industry average for Auto & Home Supply Stores in '2022' stood at 2.60. Industry average increased by 0.56 compared to previous year.
• In '2023', AAP's working capital turnover was 11.07, showing how efficiently working capital is deployed. The increase since '2022' reflects strengthening financial performance. Industry average for Auto & Home Supply Stores in '2023' stood at -0.23. Industry average declined by 2.84 from previous year.
• In '2024', AAP's working capital turnover was 7.14, showing how efficiently working capital is deployed. The decline from '2023' may indicate some operational or financial challenges. Industry average for Auto & Home Supply Stores in '2024' stood at 4.55. Industry average increased by 4.78 compared to previous year.
Overall, AAP's working capital turnover has been volatile but showed a downward trend over the past 4 years.

Formula: Working Capital Turnover = Net Sales / Working Capital

Good Range: Ranges 5-20 depending on business.