A company earns Gross Profit of 25% on Cost. For the year ended 31st March, 2017 its Gross Profit was ₹ 5,00,000; Equity Share Capital of the company was ₹ 10,00,000

A company earns Gross Profit of 25% on Cost. For the year ended 31st March, 2017 its Gross Profit was ₹ 5,00,000; Equity Share Capital of the company was ₹ 10,00,000; Reserves and Surplus ₹ 2,00,000; Long-term Loan ₹ 3,00,000 and Non-Current Assets were ₹ 10,00,000.

Compute the ‘Working Capital Turnover Ratio’ of the company.

[Ans.: Working Capital Turnover Ratio = 5 Times.]