A company's annual sales divided by its average stockholders' equity. Equity 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 capital turnover.
Related information about equity turnover:
- What is equity turnover? definition and meaning - InvestorWords.com
Definition of equity turnover: A company's annual sales divided by its average stockholders' equity. Equity turnover is used to calculate the rate of return on ...
- Definition Of Equity Turnover - Dictionary
Equity Turnover is a ratio used to determine efficiency of using stockholder's equity to generate revenue...
- Equity Turnover - Financial Dictionary - The Free Dictionary
Calculated by dividing annual sales by average stockholder equity (net worth). The ratio indicates how much a company could grow its current capital ...
- Equity turnover definition | Financial ratios
Equity turnover is important to company's owner, because it shows sales on shareholders' equity.
- What Is an Equity Turnover? | eHow.com
What Is an Equity Turnover?. Equity turnover is a statistic used by businesses and business analysts to assess the success and effectiveness of a company.
- What is equity turnover? - BusinessDictionary.com
equity risk pre... equity security · equity sharing · equity stake · equity swap · equity theory; equity turnover; equity value · equity warrant · equivalent · equivalent ...
- CFA Level 1 Study Guide - Financial Ratios - Operating Efficiency ...
Equity Turnover This ratio measures a company's ability to generate sales given its investment in total equity ... Equity turnover = net sales / average total equity ...
- What Is Equity Turnover?
Brief and Straightforward Guide: What Is Equity Turnover?