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.

Use capital turnover in a sentence

The capital turnover was hard for me to figure out because it required division and I was no good at math.

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You should try and figure out how much your capital turnover will be and hope that it is enough to earn big profits.

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capital transfer tax turnover