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', UGP's working capital turnover was 8.86, showing how efficiently working capital is deployed. Industry average for Oil/Gas Transmission in '2021' stood at -1.45.
• In '2022', UGP's working capital turnover was 15.80, showing how efficiently working capital is deployed. The increase since '2021' reflects strengthening financial performance. Industry average for Oil/Gas Transmission in '2022' stood at -2.70. Industry average declined by 1.25 from previous year.
• In '2023', UGP's working capital turnover was 19.07, showing how efficiently working capital is deployed. The increase since '2022' reflects strengthening financial performance. Industry average for Oil/Gas Transmission in '2023' stood at -3.35. Industry average declined by 0.65 from previous year.
• In '2024', UGP's working capital turnover was 20.58, showing how efficiently working capital is deployed. The increase since '2023' reflects strengthening financial performance. Industry average for Oil/Gas Transmission in '2024' stood at -2.56. Industry average increased by 0.79 compared to previous year.
Overall, UGP'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.