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.
Portfolio turnover rate For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.
Receivables turnover ratio
Receivables turnover ratio Total operating revenues divided by average receivables. Used to measure how effectively a firm is managing its accounts receivable.