Equity turnover
factor.formula
Equity turnover:
Average shareholders' equity:
This indicator measures how efficiently a company uses shareholder invested capital to generate income by comparing operating income over the last 12 months with average shareholders' equity.
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Refers to the cumulative operating income of the past 12 months. Using TTM data can smooth seasonal fluctuations and more accurately reflect the company's recent operating conditions.
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Refers to the average value of shareholders' equity during the reporting period. It is usually approximated by the average value of shareholders' equity at the beginning and end of the period, and represents the average investment amount of shareholders during the reporting period.
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Refers to the total amount of shareholders' equity at the beginning of the reporting period, representing the shareholders' investment in the company at the beginning of the reporting period.
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Refers to the total amount of shareholders' equity at the end of the reporting period, representing the shareholders' investment in the company at the end of the reporting period.
factor.explanation
Equity turnover is a key indicator to measure the efficiency of a company in generating sales revenue using shareholder invested capital. A higher equity turnover rate usually means that the company has efficient asset operation and management capabilities and can generate more sales revenue with relatively low shareholder equity investment. This indicator not only reflects the company's operating efficiency, but also indirectly reflects the company's ability to create value using shareholder funds. It should be noted that due to differences in business models and capital intensity between different industries, the comparability of equity turnover rates is low, and it is usually necessary to conduct horizontal comparisons within the same industry. At the same time, high turnover rates may also be accompanied by higher financial risks, and other financial indicators need to be comprehensively considered for evaluation.