turnover ratio

Fin [m1]1. stock or inventory turnover ratio, a measure of the number of times in a year that a business’s stock or inventory is turned over. It is calculated as the cost of sales divided by the average book value of inventory/stock.
2. fixed asset turnover ratio, a measure of the use a business makes of its capital assets. It is calculated by dividing sales by net fixed assets.
3. total asset turnover ratio, a measure of the use a business makes of all its assets. It is calculated by dividing sales by total assets.

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  • turnover ratio — ➔ ratio * * * turnover ratio UK US noun [C, usually singular] FINANCE ► the rate at which a fund buys and sells investments compared with the value of the investments it has in a particular period: »This fund has a turnover ratio of just 37% …   Financial and business terms

  • Turnover Ratio — The percentage of a mutual fund or other investment vehicle s holdings that have been turned over or replaced with other holdings in a given year. The type of mutual fund, its investment objective and/or the portfolio manager s investing style… …   Investment dictionary

  • turnover ratio — See: rate of turnover …   Accounting dictionary

  • turnover ratio — See rate of turnover …   Big dictionary of business and management

  • Receivables turnover ratio — Receivable Turnover Ratio is one of the accounting liquidity ratios, a financial ratio. This ratio measures the number of times, on average, receivables (e.g. Accounts Receivable) are collected during the period. A popular variant of the… …   Wikipedia

  • Inventory turnover ratio — is one of the Accounting Liquidity ratios, a financial ratio. This ratio measures the number of times, on average, the inventory is sold during the period. Its purpose is to measure the liquidity of the inventory. A popular variant of the… …   Wikipedia

  • Accounts Payable Turnover Ratio — A short term liquidity measure used to quantify the rate at which a company pays off its suppliers. Accounts payable turnover ratio is calculated by taking the total purchases made from suppliers and dividing it by the average accounts payable… …   Investment dictionary

  • Fixed-Asset Turnover Ratio — A financial ratio of net sales to fixed assets. The fixed asset turnover ratio measures a company s ability to generate net sales from fixed asset investments specifically property, plant and equipment (PP E) net of depreciation. A higher fixed… …   Investment dictionary

  • Receivables Turnover Ratio — An accounting measure used to quantify a firm s effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets. Formula: Some companies reports… …   Investment dictionary

  • stock turnover ratio — UK US noun [C] ACCOUNTING, COMMERCE ► the total value of goods a company sells during a particular period compared with the average value of the goods it has available for sale during that period: »A company with a rapid stock turnover might have …   Financial and business terms

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