An extremely high working capital t

An extremely high working capital turnover ratio can indicate that a company does not have enough capital to support it sales growth; collapse of the company may be imminent. This is a particularly strong indicator when the accounts payable component of working capital is very high, since it indicates that management cannot pay its bills as they come due for payment.

An excessively high turnover ratio can be spotted by comparing the ratio for a particular business to those reported elsewhere in its industry, to see if the business is reporting outlier results.

Kết quả (Anh) 2:

An extremely high working capital turnover ratio can indicate a company does not have có enough capital to support sales growth it; collapse of the garment company be imminent. This is a Particularly strong indicator khi accounts payable component of working capital is very high, since it ngụ có management can not pay ITS bills as They Come Due for payment.

An excessively high turnover ratio can be spotted by Comparing the ratio for một business nó báo những to elsewhere in industry, to see if the business is reporting outlier results.