1. Finance
  2. Shareholder & Creditor Relations

Equity Turnover


Evaluates a company's efficiency in using shareholders' equity to generate sales. A high turnover indicates that a company is using its equity more efficiently to produce sales.


Net Sales / Average Shareholders' Equity


With net sales of $2 million and average shareholder equity of $500,000, the Equity Turnover would be 4 times.