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', LCUT's working capital turnover was 3.19, showing how efficiently working capital is deployed. Industry average for Industrial Machinery/Components in '2021' stood at 2.04.
• In '2022', LCUT's working capital turnover was 2.69, showing how efficiently working capital is deployed. The decline from '2021' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2022' stood at 2.09. Industry average increased by 0.05 compared to previous year.
• In '2023', LCUT's working capital turnover was 2.78, showing how efficiently working capital is deployed. The increase since '2022' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2023' stood at 2.20. Industry average increased by 0.11 compared to previous year.
• In '2024', LCUT's working capital turnover was 3.06, showing how efficiently working capital is deployed. The increase since '2023' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2024' stood at 2.35. Industry average increased by 0.15 compared to previous year.
Overall, LCUT's working capital turnover has consistently declined during the past 4 years.

Formula: Working Capital Turnover = Net Sales / Working Capital

Good Range: Ranges 5-20 depending on business.