Net Working Capital to Revenue
Net Working Capital to Revenue is a financial metric that measures a company's efficiency in utilizing its working capital to generate revenue. It is calculated by dividing the net working capital of a company by its revenue.
Net working capital is the difference between the current assets and current liabilities of a company. It signifies the amount of cash available to a company to meet its short-term obligations.
A high Net Working Capital to Revenue ratio indicates that a company is effectively utilizing its working capital to generate revenue. However, a low ratio might indicate that the company is facing a liquidity crunch and may not be able to meet its short-term obligations.
Additional Details
| Metric Name | Type | Default Period Type |
|---|---|---|
| nwc_to_rev | fin_metric | FY |
Formatting Details
| Data Format | Display Format | Unit |
|---|---|---|
| float | perc | percentage |