Meaning of “capital turnover” in the English Dictionary

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"capital turnover" in Business English

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capital turnovernoun [ C, usually singular ]

uk us

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)