6 Views

Question : What does a low Working Capital Turnover Ratio indicate?

Option 1: Indication of inefficiency of working capital management.

Option 2: Indication of efficiency of working capital management

Option 3: Proper mutilation of resources

Option 4: None of the above


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 6th Jan, 2024

Correct Answer: Indication of inefficiency of working capital management.


Solution : Answer = Indication of inefficiency of working capital management.

A low Working Capital Turnover Ratio indicates inefficiency in working capital management. It suggests that the company is not effectively utilizing its working capital to support sales, potentially leading to liquidity problems. This ratio reflects how well a company uses its working capital to sustain sales levels.
Hence, the correct option is 1.

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amity University-Noida M.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amity University-Noida BBA Ad...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
VIT Bhopal University | B.Arc...
Apply
Mark presence in the Modern Architectural field with Bachelor of Architecture | Highest CTC : 70 LPA | Accepts NATA Score
New Horizon College BBA Admis...
Apply
UG Admissions 2026 open| NAAC ‘A’ grade | Merit-based Scholarships available.
VIT Bhopal University | Integ...
Apply
Integrated M.Tech admissions open @ VIT Bhopal University | Highest CTC 70 LPA | Application Closing Soon | Apply now
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books