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Turnover

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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Turnover

Turnover is a financial term that refers to the rate at which a company’s assets are replaced or sold. It is usually expressed as a ratio or percentage of the total assets of the company. It is used to measure the efficiency of a company’s operations and to compare it to other companies in the same industry. Turnover is also used to measure the liquidity of a company’s assets, which is the ability of the company to convert its assets into cash quickly.

History of the Term

The term โ€œturnoverโ€ has been used in the financial world since the early 19th century. It was first used to describe the rate at which a company’s assets were sold or replaced. The term was later used to measure the efficiency of a company’s operations and to compare it to other companies in the same industry. In the late 20th century, the term was used to measure the liquidity of a company’s assets, which is the ability of the company to convert its assets into cash quickly.

Comparison Table

Company Turnover Ratio
Company A 0.5
Company B 0.7
Company C 0.9

Summary

Turnover is a financial term that refers to the rate at which a company’s assets are replaced or sold. It is usually expressed as a ratio or percentage of the total assets of the company. It is used to measure the efficiency of a company’s operations and to compare it to other companies in the same industry. Turnover is also used to measure the liquidity of a company’s assets, which is the ability of the company to convert its assets into cash quickly. For more information about this term, you can visit websites such as Investopedia, The Balance, and Investing.com.

See Also

  • Asset Turnover
  • Inventory Turnover
  • Accounts Receivable Turnover
  • Fixed Asset Turnover
  • Working Capital Turnover
  • Revenue Turnover
  • Cash Conversion Cycle
  • Return on Assets
  • Return on Equity
  • Gross Profit Margin

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