calculate_working_capital_turnover
Calculate working capital turnover: net sales divided by average working capital — how efficiently a company uses its working capital (current assets minus current liabilities) to generate revenue. Formula: Working Capital Turnover = Net Sales / Average Working Capital. WHEN TO USE: Use to assess how efficiently working capital is deployed; a higher turnover means each unit of working capital supports more sales (less capital trapped in operations). WHEN NOT TO USE: Do NOT use in isolation — a very high turnover can also signal under-investment or liquidity stress; compare against peers and the operating cycle. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { working_capital_turnover: number (e.g. 4.5 = 4.5x), inputs }. PARAMETERS: net_sales (required): Net sales (revenue) for the period, e.g. 4500000. Must be > 0. begin_working_capital (required): Working capital at period start (current assets - current liabilities), e.g. 900000. Must be > 0. end_working_capital (required): Working capital at period end (current assets - current liabilities), e.g. 1100000. Must be > 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| net_sales | Yes | Net sales (revenue) for the period, e.g. 4500000. Must be > 0. | |
| end_working_capital | Yes | Working capital at period end (current assets - current liabilities), e.g. 1100000. Must be > 0. | |
| begin_working_capital | Yes | Working capital at period start (current assets - current liabilities), e.g. 900000. Must be > 0. |