capital turnover

(redirected from Equity Turnover)

Capital turnover

Calculated by dividing annual sales by average stockholder equity (net worth). The ratio indicates how much a company could grow its current capital investment level. Low capital turnover generally corresponds to high profit margins.

Capital Turnover

A ratio of how effectively a publicly-traded company manages the capital invested in it to produce revenues. It is calculated by taking the total of the company's annual sales and dividing it by the average stockholder equity, which is the average amount of money invested in the company. A high ratio indicates that the company is using its capital well, while a low ratio indicates the opposite. It is also called equity turnover.

capital turnover

A measure indicating how effectively investment capital is used to produce revenues. Capital turnover is expressed as a ratio of annual sales to invested capital.
References in periodicals archive ?
Of these, 876 were Mainland enterprises, constituting 60% by market capitalization and 71% by annual equity turnover value.
NSE's 2011 equity turnover dropped by 13% from 2010's $2.
The experts identified nine indicators they considered the most appropriate for evaluating the efficiency of separate Lithuanian economic sectors, namely 1) gross profit margin, 2) profitability ratio, 3) return on assets ratio, 4) debt ratio, 5) leverage ratio, 6) current ratio, 7) receivables turnover ratio, 8) fixed assets turnover ratio, 9) equity turnover ratio.
The National Stock Exchange's equity turnover fell 35 per cent to Rs 7,765 crore.
The ITG Peer database includes the aggregated global trading data of these firms, which equates to coverage of approximately 35% of total Asia ex-Japan equity turnover, 18% of total Japanese turnover and 12% of total US turnover.
The activity ratios in this study included reinvestment rate, earnings retention rate, days to sell inventory, total equity turnover, and Berry ratio.
The development of electronic trading permits us to investigate this additional facet of equity turnover.
The average daily equity turnover on the exchange for the first nine months was EUR308m, up 11 per cent , while the figure for the third quarter was EUR312m a day.
Our average equity turnover rate last year was 46 percent.
If the right algorithm saves 12 basis points on $50 billion in equity turnover, that's $240 million in savings that drops to the bottom line of the fund.
Borsa Italiana is ranked number one in Europe for equity turnover velocity.