To calculate the ratio, divide a company’s net sales by its average working capital. A working capital loan is a loan taken out by a business specifically to pay for its day-to-day needs.

Working capital is a crucial ingredient to running a small business. It is the money a business has available to spend on its operations after paying off its bills and short-term debts. The ...

Working capital can be further defined as the money ... The operating cycle for accounts receivable is based on the average number of days it takes for a business to collect an account.

But, that solution ignores that in the real world, businesses generally need to increase working capital as sales grow. A better solution is figuring out what the average working capital needs of ...