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', ELMD's working capital turnover was 1.32, showing how efficiently working capital is deployed. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2021' stood at 1.12.
• In '2022', ELMD's working capital turnover was 1.53, showing how efficiently working capital is deployed. The increase since '2021' reflects strengthening financial performance. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2022' stood at 1.64. Industry average increased by 0.52 compared to previous year.
• In '2023', ELMD's working capital turnover was 1.68, showing how efficiently working capital is deployed. The increase since '2022' reflects strengthening financial performance. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2023' stood at 1.31. Industry average declined by 0.33 from previous year.
• In '2024', ELMD's working capital turnover was 1.65, showing how efficiently working capital is deployed. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2024' stood at 1.62. Industry average increased by 0.32 compared to previous year.
Overall, ELMD's working capital turnover has steadily improved over the past 4 years.

Formula: Working Capital Turnover = Net Sales / Working Capital

Good Range: Ranges 5-20 depending on business.