There is no universal standard to measure working capital turnover rate, so even if the calculated working capital turnover rate is negative, it does not mean that there is something wrong with the enterprise or other aspects.
Extended data:
Asset turnover can be divided into three categories: total assets turnover, classified assets turnover (current assets turnover and fixed assets turnover) and single assets turnover (accounts receivable turnover and inventory turnover). ).
Different report users have different purposes to measure and analyze the efficiency of asset utilization:
1. The analysis of the utilization efficiency of shareholders' assets is helpful to judge the financial security of enterprises and the profitability of assets, so as to make corresponding investment decisions.
2. By analyzing the efficiency of asset utilization, creditors can identify the degree of material security or security of their claims and make corresponding credit decisions.
3. Managers can find idle assets and underutilized assets through the analysis of asset utilization efficiency, so as to deal with idle assets to save money or improve asset utilization efficiency to improve business performance.
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