IntegrityAsset TO#82
Working Capital to Assets measures the reliability of reported earnings versus underlying cash flow.
By Javier Sanz, Founder & Lead AnalystEditorially reviewed
Last updated: Reviewed by: Javier Sanz
Formula
Revenue / Average Total Assets
Description
Measures how efficiently a company uses its assets to generate revenue. It is one of the three components of DuPont analysis and a criterion in the Piotroski F-Score (improving asset turnover earns one point). Higher ratios indicate better asset utilization.
Interpretation
Above 0.7 is generally good. Retail businesses typically have very high asset turnover while capital-intensive industries (utilities, manufacturing) have lower ratios. The trend matters more than the absolute level.
Related metrics: Debt-to-Equity Ratio (D/E). (Updated 2026)
Further Reading
- SEC EDGAR primary filings on Working Capital to Assets- Primary source filings used to calculate Working Capital to Assets.
FAQ
How is Working Capital to Assets calculated?+
Working Capital to Assets uses the formula: Revenue / Average Total Assets. compare against sector median on /screener with the Sector filter applied. ValueMarkers refreshes the calculation within 24 hours of each new SEC filing using SEC EDGAR 10-K cash-flow reconciliation + footnote disclosures.
What is a good Working Capital to Assets value by sector?+
There is no single 'good' value for Working Capital to Assets — context is sector-driven. compare against sector median on /screener with the Sector filter applied. The /screener exposes sector-relative percentiles for Working Capital to Assets on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use Working Capital to Assets?+
James Chanos, Carson Block, forensic-accounting analysts cite Working Capital to Assets as a key input to to detect earnings manipulation and accruals inflation. The academic anchor is Beneish (1999) and Sloan (1996) accruals research. ValueMarkers weights this within the Integrity pillar of the VMCI score (15% of total).
What are the limitations of Working Capital to Assets?+
Working Capital to Assets can mislead in false positives in fast-growing or restructuring companies. Pair Working Capital to Assets with at least two cross-checks from other VMCI pillars — for example, free cash flow trend, balance-sheet quality, and earnings consistency — before drawing a single-metric conclusion.
Where can I see live Working Capital to Assets data?+
Visit any /stock/[ticker] page on ValueMarkers to see live Working Capital to Assets data, sector percentiles, and the VMCI composite score that integrates Working Capital to Assets with 119 other indicators across 100,000+ stocks. The free /screener exposes Working Capital to Assets as a filterable column.
Related Integrity Indicators
Debt-to-Equity Ratio (D/E)OCF/Debt
Debt-to-Equity Ratio expresses the reliability of reported earnings versus underlying cash flow.
Debt-to-Assets RatioFCF Conv
Debt-to-Assets Ratio measures the reliability of reported earnings versus underlying cash flow.
Net Debt to EBITDA (Net Debt/EBITDA)Accrual
Net Debt to EBITDA expresses the reliability of reported earnings versus underlying cash flow.
Current RatioCapEx/Rev
Current Ratio measures the reliability of reported earnings versus underlying cash flow.
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