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Working Capital Turnover Ratio: A Managerial Perspective

Author

Listed:
  • Enos Kabu

    (Business Administration Department, Politeknik Negeri Kupang, Indonesia)

  • Stella Y. Sahetapy Engle

    (Business Administration Department, Politeknik Negeri Kupang, Indonesia)

  • Maria C.B. Manteiro

    (Business Administration Department, Politeknik Negeri Kupang, Indonesia)

  • Deviarbi Sakke Tira

    (Faculty of Public Health, University of Nusa Cendana, Indonesia)

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.

Suggested Citation

  • Enos Kabu & Stella Y. Sahetapy Engle & Maria C.B. Manteiro & Deviarbi Sakke Tira, 2024. "Working Capital Turnover Ratio: A Managerial Perspective," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(4), pages 2042-2045, April.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:4:p:2042-2045
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