DAYS WORKING CAPITAL

A term in the finance and accounting world saying how many days it will take for a company to convert the working capital into a revenue.

Days working capital can be used in ratio and fundamental analysis.When utilizing any ratio, it is important to consider how this company has evolved over time and how it compares to similar companies in the same industry. By comparing this ratio in a historical and relative basis, you will get a better understanding of how efficient a given company actually is.