What does capital turnover mean?

capital turnover meaning in Law Dictionary

Calculated by dividing yearly sales by average stockholder equity (web well worth). The proportion shows exactly how much an organization could grow its present money investment level. Reduced money return generally corresponds to large income.

capital turnover meaning in Business Dictionary

1. Ratio of yearly sales income into net worth associated with company. Also known as equity return. 2. Pattern of increasing capital, making assets, and coming back the capital to its origin from earnings generated.