Capital Turnover

Business, Legal & Accounting Glossary

Definition: Capital Turnover


Capital Turnover


Full Definition of Capital Turnover


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. The higher the ratio is, the more efficiently a company is using its capital. also called equity turnover.


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, from PayrollHeaven.com website: https://payrollheaven.com/define/capital-turnover/

Definition Sources


Definitions for Capital Turnover are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.