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- DictionaryTurn·o·ver/ˈtərnˌōvər/
noun
- 1. the amount of money taken by a business in a particular period: "a turnover approaching $4 million"
- 2. the rate at which employees leave a workforce and are replaced: "high staff turnover left the program with too many young instructors"
People also ask
What does turnover mean in accounting?
What is the difference between turnover and profit?
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What is a rapid turnover?
What is labor turnover?
Why is it important to know your business's turnover?
Turnover can be a noun, adjective, or verb with different meanings related to sales, inventory, movement, loss, or rotation. Learn the synonyms, examples, and history of this word from the Merriam-Webster dictionary.
- What Is Turnover?
- Understanding Turnover
- What Is Accounts Receivable Turnover?
- What Is Inventory Turnover?
- What Is Portfolio Turnover?
- Asset Turnover
- The Bottom Line
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Turnover is how quickly a company has replaced assets within a specific period. It can include selling inventory, collecting receivables, or replacing employees. It can also represent the percentage of an investment portfolio that is replaced. Turnover might also mean something different depending on the area you're in. For instance, overall turnov...
Turnover ratioscalculate how quickly a business conducts operations. This measures efficiency and how well it is using its resources. Two of the largest assets owned by a business are usually accounts receivable and inventory, if any is kept. Both of these accounts require a significant cash investment, and it is important to measure how quickly a ...
Accounts receivable represents the total dollar amount of unpaid customer invoices at any point in time. Assuming that credit sales are sales not immediately paid in cash, the accounts receivable turnoverformula is credit sales divided by average accounts receivable. The average accounts receivable is simply the average of the beginning and ending ...
The inventory turnover formula, which is stated as the cost of goods sold (COGS)divided by average inventory, is similar to the accounts receivable formula. When you sell inventory, the balance is moved to the cost of sales, which is an expense account. The goal as a business owner is to maximize the amount of inventory sold while minimizing the in...
Turnover is a term that is also used for investments. In this context, turnover measures the percentage of an investment portfolio that is sold in a set period. For instance, assume a mutual fund has $100 million in assets under management, and the portfolio manager sells $20 million in securities during the year. The rate of turnover is $20 millio...
The asset turnoverratio measures how well a company generates revenue from its assets during the year. Asset Turnover=Total SalesBeginning Assets +Ending Assets2where:Total Sales=Annual sales totalBeginning Assets=Assets at start of yearEnding Assets=Assets at end of year\begin{aligned} &\text{Asset Turnover} = \frac{ \text{Total Sales} }{ \frac { ...
Turnover can be either an accounting concept or an investing concept. In accounting, it measures how quickly a business conducts its operations. In investing, turnover looks at what percentage of a portfolio is sold in a set period. A business will have many types of turnover to measure, but the most common are inventory and accounts receivable. Ac...
Turnover is how quickly a company replaces assets, collects payments, or sells inventory within a period. Learn about different types of turnover ratios, such as accounts receivable, inventory, portfolio, and asset turnover, and why they matter for business efficiency and performance.
- Will Kenton
- 2 min
Turnover can mean the amount of business, the rate of employee changes, or a type of pastry. Learn how to use this word in different contexts with examples from the Cambridge Dictionary.
Dec 9, 2022 · Turnover is the total sales made by a business over a period. Learn how to calculate turnover, why it's important, and the different types of turnover in accounting and finance.
an act or result of turning over; upset. change or movement of people, as tenants or customers, in, out, or through a place: The restaurant did a lively business and had a rapid turnover. the aggregate of worker replacements in a given period in a given business or industry.
Definition of Turnover. In accounting, the term turnover can have more than one meaning. In some countries turnover is used in place of sales. Turnover also pertains to certain financial ratios that relate a balance sheet (average) amount to an income statement amount.
Turnover can mean the value of goods or services sold, the rate of people leaving or being replaced, or a pastry with a filling. Learn more about the word frequency, synonyms, pronunciation, and usage of turnover.
