Friday, December 26, 2008

Investing Term of the Day: capital turnover


Term of the Day - capital turnover

For Friday, December 26, 2008


Term of the Day - 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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1 comment:

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