Why does industry view the Working Capital Productivity Ratio as Important?
Investors and stakeholders may find it useful to compare the Working Capital Productivity ratio of a company compared to the Working Capital Productivity ratio of similar companies and the industry. This can help give an indication of how well the organization is perceived from a risk perspective. The Working Capital Productivity ratio is only one of many ratios and is used to raise more questions, however it remains an important cash related financial ratio. Historical Working Capital Productivity ratio analysis can also provide useful insights, because this historical analysis when assessed against the industry analysis can provide insights into the historical risk level of the business.
