Definition Of Turnover In Business
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Turnover can also refer to the amount of assets or liabilities that a business cycles through in comparison to the sales level that it generates.
Definition of turnover in business. The most common measures of corporate turnover look at ratios involving accounts receivable and. Turnover is simply how much money your business has made over a period of time. A cycle of purchase sale and replacement of a stock of goods. It s sometimes referred to as gross revenue or income.
The amount received in sales for a stated period. Turnover noun business c1 c or u the amount of business that a company does in a period of time. Variable noun the turnover of a company is the value of the goods or services sold during a particular period of time. Turnover noun business c1 c or u the amount of business that a company does in a period of time.
Turnover is the total sales made by a business in a certain period. As explained earlier you can make lots of money turnover wise while also making a loss. Large supermarkets have high turnovers their goods sell very quickly. Imagine buying a million t shirts for 10 each and selling them all for 1 each.
When it comes to all things business turnover represents the rate at which any asset is replaced or revolved during a certain time period. It s an important measure of your business s performance. Entry 1 of 3 1 a 1. This information is useful for determining how well a company is managing its assets and liabilities.
Large supermarkets have high turnovers their goods sell very quickly. The ratio of sales for a stated period to average inventory. This is different to profit which is a measure of earnings. The business has an annual turnover of 50 000.
It is a term that is most commonly used in europe and asia. For example a european or asian company s press release that announces. For example a business that has inventory turnover of four must sell all of its on hand inventory four times per year in order to generate its annual sales volume. Not how much profit it s made but just the total of all your business sales.
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