WCT, or Working Capital Turnover, is a financial ratio that shows how efficiently a company uses its working capital to generate sales. It reflects the relationship between net sales and working capital, helping investors and analysts understand how well a business is operating with the resources it has.
Formula:
WCT = Net Sales / Average Working Capital
A higher WCT means the company is utilizing its short-term assets and liabilities efficiently to support sales. However, extremely high WCT may indicate a risk of low liquidity.
Why does it matter in crypto & business analysis?
For Web3 and crypto-related businesses, especially exchanges or DeFi platforms, efficient capital usage is key. WCT helps evaluate operational strength and scalability potential.
In short:
Efficient working capital = Stronger business model.
#WCT #WorkingCapital #CryptoFinance #BinanceSquare #BusinessInsights