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', HTO's working capital turnover was -8.29, showing how efficiently working capital is deployed. Industry average for Water Supply in '2021' stood at -3.70.
• In '2022', HTO's working capital turnover was -6.93, showing how efficiently working capital is deployed. The increase since '2021' reflects strengthening financial performance. Industry average for Water Supply in '2022' stood at -2.68. Industry average increased by 1.02 compared to previous year.
• In '2023', HTO's working capital turnover was -5.27, showing how efficiently working capital is deployed. The increase since '2022' reflects strengthening financial performance. Industry average for Water Supply in '2023' stood at -2.39. Industry average increased by 0.30 compared to previous year.
• In '2024', HTO's working capital turnover was -6.96, showing how efficiently working capital is deployed. The decline from '2023' may indicate some operational or financial challenges. Industry average for Water Supply in '2024' stood at -2.06. Industry average increased by 0.33 compared to previous year.
Overall, HTO'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.