A company's annual sales divided by its average stockholders' equity. Capital turnover is used to calculate the rate of return on common equity, and is a measure of how well a company uses its stockholders' equity to generate revenue. The higher the ratio is, the more efficiently a company is using its capital. also called equity turnover.
Related information about capital turnover:
- Working Capital Turnover Definition | Investopedia
A measurement comparing the depletion of working capital to the generation of sales over a given period. This provides some useful information as to how ...
- What is capital turnover? definition and meaning - InvestorWords.com
Definition of capital turnover: A company's annual sales divided by its average stockholders' equity. Capital turnover is used to calculate the rate of return on ...
- How to Calculate Capital Turnover | eHow.com
How to Calculate Capital Turnover. Capital turnover shows investors how well a company can take their money and generate sales from the contributions.
- Capital Turnover - Financial Dictionary - The Free Dictionary
Calculated by dividing annual sales by average stockholder equity (net worth). The ratio indicates how much a company could grow its current capital ...
- What is capital turnover? - BusinessDictionary.com
Definition of capital turnover: Ratio of annual sales revenue to the net worth of the firm. Also called equity turnover.
- What is the formula for capital turnover ratio
What is the formula for capital turnover ratio? In: Financial Statements, Business Etiquette [Edit categories]. Answer: Capital turnover = Sales/ Invested capital ...
- Working Capital Turnover Ratio - AccountingTools
Working Capital Turnover Ratio Calculation | Formula | Example.
- What Is a Capital Turnover?
Sometimes referred to as an equity turnover or a working capital turnover, the capital turnover is the total amount of sales revenue divided by the average net ...