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 ?
00 per cent to the total equity turnover volume and value respectively.
3 per cent of equity turnover against a 2017 average of 63.
Of these, 876 were Mainland enterprises, constituting 60% by market capitalization and 71% by annual equity turnover value.
Italian equity turnover has dropped from EUR 101bn to just EUR 50bn.
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.
PAVE hopes to challenge the BME, which accounted for some 84% of total equity turnover in the country as of 31 December 2010.
The National Stock Exchange's equity turnover fell 35 per cent to Rs 7,765 crore.
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.
Equity turnover during the year amounted to ISK721bn, an increase of 30%, while trading in bonds and bills amounted to ISK1,496bn, an increase of 46%.
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.