120 :- Calculate Working Capital Turnover Ratio from the following information :
Revenue form Operations Rs 15,00,000; Current Assets Rs 6,25,000; Total Assets Rs 10,00,000; Non – Current Liabilities Rs 5,00,000; Shareholder’s Funds Rs 2,50,000.
Solution :-
Shareholder’s Funds + Non – Current Liabilities + Current Liabilities = Total Assets
2,50,000 + 5,00,000 + Current Liabilities = 10,00,000
Current Liabilities = Rs 2,50,000
Working Capital = Current Assets – Current Liabilities
= 6,25,000 – 2,50,000
= Rs 3,75,000
Revenue from Operation = Rs 15,00,000
Working Capital Turnover Ratio = Net Revenue from Operation/Working Capital
= 15,00,000/3,75,000
= 4 Times