Series 79: 3.2.5. Equity Turnover Ratio

3.2.5. Equity Turnover Ratio

The equity turnover ratio, also known as the capital turnover ratio, is a measure of how efficiently a company uses stockholder equity to generate revenues. To calculate the equity turnover ratio for a given period, first determine the average shareholders’ equity for the period by taking the beginning and ending figures for the period from the balance sheet, adding them together, and dividing by two:

Next, get the net revenues from the income sta