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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
LianLian Digital has announced that, its cross-border financial online technical solutions "E-order" and "E-credit" will be engaged in helping cross-border e-commerce sellers resolve their financing problems such as capital turnover, through the five billion funds provided by financial institutions, the company said.
"Most entrepreneurs try to hide their incomes, capital turnover, and this mainly concerns people who manage trade and service facilities," he said.
On the other hand, AUTO has maintained stable working capital turnover days in addition to better financial flexibility with near-zero FFO adjusted leverage (2017: 0.6x).
In a press statement, the lobby criticised the high capital turnover requirement set for firms bidding for state tenders.
We will also continue to apply stringent control over cash collection rate, improve projects' capital turnover and maintain our gearing at a relatively reasonable level.
Mining projects have a full cycle of around 50 years and demand investment of about US$500 million and a capital turnover period of atleast 10 years.
We are always working to manage the portfolio in order to achieve the aimed target and capital turnover.
The accounts receivable turnover (days), inventory turnover (days), net working capital turnover rate, and return on assets indicators were used to measure the effectiveness of the working capital management.
"It is important to have same conditions on our market and their market, including freedom of capital turnover. As for foreign currency, the National Bank is in talks with the Eurasian Economic Commission, we are waiting their recommendations," the Deputy Minister stated.
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.