Asset turnover

The capital turnover rate indicates how often the capital has flowed back over the revenues. The faster the envelope process is going on, the lower the required capital expenditure, since always flows back into shorter intervals capital from the market. At high capital turnover can therefore having a relatively low capital investment (or capital requirements ) arrive at a correspondingly high rate of return and due to the rapid reflux of capital to a favorable liquidity. Examples of industries with high asset turnover, retail and the banking sector. Comparatively low capital turnover, however, have capital-intensive industries such as telecommunications and transportation industries.

To determine the capital turnover rate of turnover is set using the equity or total capital in the relationship.

• Operating performance measure
• Financing