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', LFMDP's working capital turnover was 4.20, showing how efficiently working capital is deployed. Industry average for Medical/Nursing Services in '2021' stood at 1.73.
• In '2022', LFMDP's working capital turnover was 117.10, showing how efficiently working capital is deployed. The increase since '2021' reflects strengthening financial performance. Industry average for Medical/Nursing Services in '2022' stood at 1.56. Industry average declined by 0.17 from previous year.
• In '2023', LFMDP's working capital turnover was -24.93, showing how efficiently working capital is deployed. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2023' stood at 1.73. Industry average increased by 0.17 compared to previous year.
• In '2024', LFMDP's working capital turnover was -114.86, 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, LFMDP'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.