Abstract
This study aims to introduce another perspective to better understand working capital turnover ratio – a financial ratio that has been widely used in assessing working capital efficiency of a company. Using a true experimental and a simulation design method like simple business transactions, we find that this formula gives different figures. Management, therefore, may need to aware that the working capital turnover might be beneficial for analysts, but it may be not for financial managers. It provides different meaning as well as its relevancy for money management.
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