What is CAPITAL TURNOVER?

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.

More On This Topic



Link to This Definition
Did you find this definition of CAPITAL TURNOVER helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary