- 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
* * *capital turnover capital turnover ➔ turnover
* * *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.
* * *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.»
The capital turnover ratio measures how effective a company's use of debt is.
Financial and business terms. 2012.
Look at other dictionaries:
capital turnover — asset turnover The ratio of the sales of a company or other organization to its capital employed (i.e. its assets less current liabilities). It is presumed that the higher this ratio, the better the use that is being made of the assets in… … Accounting dictionary
capital turnover — asset turnover The ratio of the sales of a company or other organization to its capital employed (i. e. its assets less current liabilities). It is presumed that the higher this ratio, the better the use that is being made of the assets in… … Big dictionary of business and management
capital turnover — Fin the value of annual sales as a multiple of the value of the company’s stock … The ultimate business dictionary
Working Capital Turnover — A measurement comparing the depletion of working capital to the generation of sales over a given period. This provides some useful information as to how effectively a company is using its working capital to generate sales. A company uses working… … Investment dictionary
Коэффициент оборачиваемости капитала (CAPITAL TURNOVER RATIO) — Соотношение годового объема реализации и инвестированного капитала. При оценке этого соотношения инвестированный капитал обычно вычисляется как сумма акционерного капитала и долгосрочных обязательств. См. также Показатель капиталоемкости (Capital … Словарь терминов по управленческому учету
net working capital turnover — (Accounting) index of a company s debt compared to the current assets (used to assess efficiency) … English contemporary dictionary
turnover — or turns Terms used to describe the number of operating cycles in a defined period of time or the length of each specific operating cycle. Typical turnover cycles are: the rate at which accounts receivable converts to cash, the rate at which… … Financial and business terms
Turnover — Mutual Funds: A measure of trading activity during the previous year, expressed as a percentage of the average total assets of the fund. A turnover ratio of 25% means that the value of trades represented one fourth of the assets of the fund.… … Financial and business terms
turnover — 1) The total sales figure of an organization for a stated period. Turnover is defined in the UK Companies Act (1985) as the total revenue of an organization derived from the provision of goods and services, less trade discounts, VAT, and any… … Big dictionary of business and management
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