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', TTC's working capital turnover was 7.17, showing how efficiently working capital is deployed. Industry average for Tools/Hardware in '2021' stood at 7.17.
• In '2022', TTC's working capital turnover was 7.76, showing how efficiently working capital is deployed. The increase since '2021' reflects strengthening financial performance. Industry average for Tools/Hardware in '2022' stood at 7.76. Industry average increased by 0.59 compared to previous year.
• In '2023', TTC's working capital turnover was 6.23, showing how efficiently working capital is deployed. The decline from '2022' may indicate some operational or financial challenges. Industry average for Tools/Hardware in '2023' stood at 6.23. Industry average declined by 1.53 from previous year.
• In '2024', TTC's working capital turnover was 5.59, showing how efficiently working capital is deployed. The decline from '2023' may indicate some operational or financial challenges. Industry average for Tools/Hardware in '2024' stood at 5.59. Industry average declined by 0.64 from previous year.
Overall, TTC'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.