This ratio is an indicator which shows the operating efficiency of the company.

It is not recommended to be used alone. For example, a high ratio value could be an indicator to the operating efficiency or a clue to the insufficient equity because of the usage of extra foreign sources.

 

Calculation:

Equity Turnover = Net Sales TTM / Average Equity

Net Sales TTM is calculated by summing the Sales values of the selected quarter and the previous 3 quarters.

Average Equity is the average of the Equity values of the selected quarter and the previous 3 quarters.