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', CHE's working capital turnover was -29.67, showing how efficiently working capital is deployed. Industry average for Medical/Nursing Services in '2021' stood at 1.73.
• In '2022', CHE's working capital turnover was -44.15, showing how efficiently working capital is deployed. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2022' stood at 1.56. Industry average declined by 0.17 from previous year.
• In '2023', CHE's working capital turnover was 27.58, showing how efficiently working capital is deployed. The increase since '2022' reflects strengthening financial performance. Industry average for Medical/Nursing Services in '2023' stood at 1.73. Industry average increased by 0.17 compared to previous year.
• In '2024', CHE's working capital turnover was 16.33, showing how efficiently working capital is deployed. The decline from '2023' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2024' stood at 2.25. Industry average increased by 0.52 compared to previous year.
Overall, CHE's working capital turnover has been volatile but showed an upward trend over the past 4 years.

Formula: Working Capital Turnover = Net Sales / Working Capital

Good Range: Ranges 5-20 depending on business.