Capital Turnover
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Capital TurnoverKnowledge Center |
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Welcome to the knowledge center about Capital Turnover. Here you'll find a summary of Capital Turnover, but also:
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What is Capital Turnover? Meaning.The Capital Turnover is a company's annual sales divided by its average stockholders' equity. Capital turnover is used to calculate the rate of return on common equity, and is a measure of how well a company uses its stockholders' equity to generate revenue. It is also called Equity Turnover. In a general sense, the higher the Capital Turnover, the better - it means the company is generating a lot of sales compared to the money it uses to fund the sales.
Compare also: Earnings per Share |
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| Return to Management Hub: Finance & Investing More on Management | Return to Management Dictionary |
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