capital turnover

Definition

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.

Cite this definition


Related terms:

turnover

Related Research Articles from the InvestorGuide.com University

Initial Public Offerings
What happens when a company decides to go public and sell stock? Learn about the reasons for an IPO, why performance matters, and how you can make money off the IPO market.

Choosing a Stock
Which companies should I invest in? Learn how to find a company, gather the research, and do the analysis. Also gives suggestions of things to look for while conducting this process.

Stock Indexes
Find out about the stocks that comprise the Dow Jones Industrial Average, the Nasdaq Composite, the S&P 500, the Wilshire 5000, the Russell Index and foreign indexes.



Related Resources from InvestorGuide.com

Stock of the Day Newsletter
Learn about stocks that are making headlines today by signing up for our free newsletter.

   
Stock Research Tool
Using our stock research tool, you have access to our stock tracker, quotes, interactive charts, news, analysis and profile information. Click here to use our stock research tool or enter a stock ticker here:

   

Featured Sponsor


Give this definition a rating from 1 to 5 (5 being the best)...
1    2    3    4    5    



Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Add this Glossary to your Site | Bookmark InvestorWords.com
Home | Terms by Subject | Keyword Advertising | About Us | Contact Us
Work for InvestorWords.com
BusinessDictionary.com | InvestorGuide.com | WebFinanceInc.com
Disclaimer and Copyright©

Copyright©1997-2008 by WebFinance, Inc. All Rights Reserved.
Unauthorized duplication, in whole or in part, is strictly prohibited.