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', NGS's working capital turnover was 1.62, showing how efficiently working capital is deployed. Industry average for Oilfield Services/Equipment in '2021' stood at 3.20.
• In '2022', NGS's working capital turnover was 2.47, showing how efficiently working capital is deployed. The increase since '2021' reflects strengthening financial performance. Industry average for Oilfield Services/Equipment in '2022' stood at 4.55. Industry average increased by 1.35 compared to previous year.
• In '2023', NGS's working capital turnover was 3.60, showing how efficiently working capital is deployed. The increase since '2022' reflects strengthening financial performance. Industry average for Oilfield Services/Equipment in '2023' stood at 4.66. Industry average increased by 0.12 compared to previous year.
• In '2024', NGS's working capital turnover was 4.21, showing how efficiently working capital is deployed. The increase since '2023' reflects strengthening financial performance. Industry average for Oilfield Services/Equipment in '2024' stood at 4.35. Industry average declined by 0.32 from previous year.
Overall, NGS'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.