Working capital turnover, the ratio of net revenues to working capital, indicates how efficiently a company is using working capital. If you are undertrading, you miss profit opportunities. If you are overtrading, you may be making some decisions that improve cash flow but seriously wound your long-term ability to grow. First, find how much working capital you have. Then, determine your net revenue from your income and expense statement. Now divide your net revenue by your working capital. Your working capital turnover should be between 8 and 12 turns per year.