Arbeidskapitalturnover

Arbeidskapitalturnover is a financial ratio that measures a company's efficiency in using its working capital to generate sales. It is calculated by dividing the net sales of a company by its average working capital. Working capital is defined as current assets minus current liabilities. A higher arbeidskapitalturnover ratio generally indicates that a company is managing its working capital effectively and is able to generate more revenue with the capital it has invested in short-term assets and liabilities. Conversely, a low ratio may suggest that the company has excess working capital or is not efficiently converting its working capital into sales.

This ratio is useful for comparing a company's performance against its historical data and against industry benchmarks. A significant change in the arbeidskapitalturnover ratio over time can signal potential issues or improvements in operational efficiency. For example, an increasing ratio might be a positive sign of improved inventory management or faster collection of accounts receivable. A decreasing ratio could point to issues like slow-moving inventory, difficulty in collecting payments from customers, or an overall buildup of working capital that is not contributing to sales. Analyzing the components of working capital, such as inventory levels, accounts receivable, and accounts payable, can provide deeper insights into the drivers of the arbeidskapitalturnover ratio.