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English definition of “capital turnover”

capital turnover

noun [C, usually singular]
 
 
ACCOUNTING, FINANCE a measure of how effectively a company uses its assets to produce sales, calculated by dividing annual sales by the amount of capital invested in the company: A company's capital turnover is a measure of how capital-intensive it is. The capital turnover ratio measures how effective a company's use of debt is.
(Definition of capital turnover from the Cambridge Business English Dictionary © Cambridge University Press)
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