capital 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 ?
Salman said: "Our vision as a government is to offer the special economic zones system as a chain of integrated projects in order to attract international corporations, maximise benefits, and increase the rate of capital turnover.
It is important to have same conditions on our market and their market, including freedom of capital turnover.
At this stage, capital turnover is too slow for the global economy.
Capital turnover was modest in 3Q, with few funds experiencing inflows or outflows greater than $500 million; 41 percent of all funds experienced inflows for the quarter.
b) Analysis of data: The analysis has been done on the basis of various indicators like current ratio, absolute liquid ratio, current assets to total assets ratio, inventory turnover ratio, debtor turnover ratio, net working capital turnover ratio, inventory to current assets ratio, receivables to current assets ratio, deposits to current assets ratio, cash & bank to current assets ratio, loans and advances to current assets ratio, etc.
Negative median percentage changes imply that the firms within these industries saw their working capital turnover ratios increase and their corresponding days of working capital decrease.
On 31 August 2011, the Company entered into the Entrusted Loan Agreement with CCB Diao Yu Tai Branch and Lvsigang Power Generation Company in relation to the provision of the first trench of the entrusted loan amounting to RMB400 million by the Company to Lvsigang Power Generation Company through the Entrusted Loan Arrangement, in which CCB Diao Yu Tai Branch acts as a lending agent, in order to satisfy Lvsigang Power Generation Company's day-to-day capital turnover.
Protek covers all market segments from production to retail, which implies healthy working capital turnover and helps assure its products are available to customers.
However, norms for indicators like capital turnover, margins, return on invested capital and free cash flow often can help to govern forecast assumptions.
enter the Red Zone, whereas the accounts receivable stay in the Blue Zone, showing that automakers are facing increasing pressure on capital turnover.
Excel, which is headed up by telecoms industry veteran Mike Bandeira and retail industry expert Amer Majid, has committed pounds 6m to the venture with an estimated total start-up investment, including capital turnover, of pounds 15m.
Return on capital employed is the product of operating margin and capital turnover (see Box 2).