Turnover
In managerial finance it is the number of times a given asset, such as inventory, is replaced during the accounting period, usually a year. |
Similar financial terms
Accounts receivable turnoverThe ratio of net credit sales to average accounts receivable, a measure of how quickly customers pay their bills.
Total asset turnover
The ratio of net sales to total assets.
Thus, the total asset turnover ratio compares the turnover with the assets that the business has used to generate that turnover.
In other words, we are just saying that for every 1 of assets, the turnover is x.
Receivables turnover ratio
Total operating revenues divided by average receivables. Used to measure how effectively a firm is managing its accounts receivable.
Portfolio turnover rate
For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.
