What is Turnover?

[joey88]

I'm doing business studies coursework, could anybody please tell me what is meant by the term 'turnover'? Thank you.

[hectic]

turnover in a financial context refers to the rate at which a provider of goods cycles through its average inventory. The number of times within its business cycle that a company completely exhausts (and replenishes) its inventory is called its turnover. Auditors will frequenlty use a company's turnover ratio (turnover = cost of goods sold/average inventory level) to compare it to other companies in its industry.

[ewand]

Hectic is partly right, though it is dependent on context......this might help:

http://www.google.co.uk/search?complete=1&hl=e n&q=define%3A+turnover&meta=

[Cobra.]

Sales (net of VAT) to put it simply

[oldhenry]

This may not apply to a non-profit making business of course where other factors are important, such as gross rents on a Housing Association , and service charges.
Fee income for an accounatant/solicitor.
Don't just think business means 'sales' as there is more business that is not just sales ,but fees earned for labour supplied.