How this calculator works
Net working capital is current assets less current liabilities. Average its opening and closing values, then divide period revenue by that average. You can instead enter the two net balances or a direct average. This tool requires a positive average because zero makes turnover undefined and a negative denominator reverses the usual efficiency interpretation.
Formula
Opening WC = opening current assets - opening current liabilities. Closing WC = closing current assets - closing current liabilities. Average WC = (opening WC + closing WC) / 2. Turnover = revenue / average WC.
Worked example
Opening assets of $150,000 less liabilities of $60,000 give $90,000. Closing assets of $190,000 less liabilities of $80,000 give $110,000. Their $100,000 average supports $500,000 of revenue at 5 times turnover.
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Frequently asked questions
What if working capital is negative?
The balance can be economically meaningful, but the ordinary positive turnover comparison is not. Use the working capital page to inspect those balances.
Is a very high ratio good?
It can indicate efficient use of funds, or too little short-term funding. A denominator near zero makes the ratio particularly unstable.
What period should revenue cover?
Use revenue earned between the opening and closing balance-sheet dates. Annual and quarterly turnover need the same period basis before comparison.