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. Bloomberg Financial Dictionary

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capital turnover capital turnover turnover

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   A measure of how capital intensive a business is. It measures total sales (or turnover) divided by the capital employed in the business. The smaller the number the more capital is required for a given amount of sales. Also known as Asset Turnover.

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capital turnover UK US noun [C, usually singular]
ACCOUNTING, FINANCE a measure of how effectively a company uses its assets to produce sales, calculated by dividing annual sales by the amount of capital invested in the company: »

A company's capital turnover is a measure of how capital-intensive it is.

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The capital turnover ratio measures how effective a company's use of debt is.


Financial and business terms. 2012.

Look at other dictionaries:

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  • Capital, Volume II — Capital , Volume 2, subtitled The Process of Circulation of Capital was prepared by Friedrich Engels from notes left by Karl Marx and published in 1893. It is divided into three parts [cite book|title=Capital Vol2.|isbn=0 7178 0483… …   Wikipedia

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