Answer:
The capital turnover is: 3.33
Explanation:
The capital turnover ratio is also referred to annual sales of a business to the total amount of its stockholders' equity. It indicates a company's effectiveness in using its capital to generate revenue.
The capital turnover ratio is calculated by the following formula:
The capital turnover = Net Annual Sales /Average amount of working capital
In where:
Average amount of working capital = Current assets - Current abilities
In Travis Concrete:
The capital turnover = Sales revenue/Invested capital = $1,500,000/$450,000 = 3.33
