A precision turning tool has a rotatingly drivable tool body. A tool slide and corresponding compensating slide are displaceably mounted in the tool body. The tool slide is displaceable along an axis of adjustment aligned at right angles to an axis of rotation of the tool body. The compensating slide is automatically displaceable along an axis of compensation aligned parallel to the axis of adjustment contrary to the movement of the tool slide to compensate for any imbalance. At an end projecting out of the tool body in the direction of adjustment the tool slide has a mounting surface, on which a cutting plate carrier can be mounted. An electronic distance measuring system is provided with a display unit and an energy supply device, wherein the distance of adjustment of the tool slide can be detected by means of the distance measuring system and displayed.