turnover


turnover
turnover or turns
Terms used to describe the number of operating cycles in a defined period of time or the length of each specific operating cycle. Typical turnover cycles are: the rate at which accounts receivable converts to cash, the rate at which inventory converts to receivables or cash, the rate at which accounts payable are paid, and the number of times in a year inventory can be said to be sold and replaced. For example, if a firm's average inventory level is equivalent to one quarter of its annual sales, it can be said that inventory turns four times a year.
(See days inventory, days payables and days receivables for definitions of other common measurements of turnover.)
While turnover concepts are most often applied to elements of the working capital conversion cycle, there are other applications. For example, asset turnover is the ratio of net sales divided by total assets. American Banker Glossary
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for mutual funds , a measure of trading activity during the previous year, expressed as a percentage of the average total assets of the fund. A turnover rate of 25% means that the value of trade represented one-fourth of the assets of the fund. For finance, the number of times a given asset, such as inventory, is replaced during the accounting period, usually a year. For corporate finance, the ratio of annual sales to net worth, representing the extent to which a company can grow without outside capital. For markets, the volume of shares traded as a percent of total shares listed during a specified period, usually a day or a year. For Great Britain, total revenue. Percentage of the total number of shares outstanding of an issue that trades during any given period. Bloomberg Financial Dictionary
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The total money value of securities traded, as calculated by multiplying price by the number of securities traded. Exchange Handbook Glossary
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The total value (unit of trading multiplied by number of contracts) of all contract lots traded on an exchange, for a specified period of time. LIFFE

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turnover turn‧o‧ver [ˈtɜːnˌəʊvə ǁ ˈtɜːrnˌoʊvər] noun [singular, uncountable]
1. ACCOUNTING the amount of business done in a particular period of time, measured by the amount of money obtained from customers for goods or services that have been sold; = SALES:
turnover of

• The commercial services business unit had an annual turnover of 3.9 billion kronor.

ˌasset ˈturnover
ACCOUNTING a company's sales in relation to its assets, calculated to see how efficiently a business uses its assets
ˌcapital ˈturnover also inˌvestment ˈturnover ACCOUNTING
the relationship between the total sales of a business and its share capital. For example, if a business has total sales of £10 million and the share capital was £2 million, the capital turnover is 5:1:

• Inferior quality, enormous waste in construction, and slow capital turnover are to be found throughout the industry.

ˌstock ˈturnover also ˌstock ˈturn , ˌinventory ˈturnover ACCOUNTING
the average value of stock held by a business in relation to the total value of its sales during a year, showing how quickly a business sells its stock:

• New book purchases must be based on a stock turn of one year — in other words, the whole print run has to sell out within one year.

2. HUMAN RESOURCES the rate at which workers leave an organization and are replaced by others:

• Morale among child-care workers is low, and turnover is more than 40% a year.

• Contract workers have a high turnover rate.

3. COMMERCE the rate at which goods are sold:
stock turnover of

• Our business success is built on a fast turnover of merchandise.

4. FINANCE the number of shares traded on a stockmarket during a particular period of time, usually a day, or the number of shares traded in a particular company:

• Stocks closed 16 per cent lower at 27360 points amid light turnover (= not much trading ) .

• The company's shares gained 20p to 463p on turnover of 1.1 million shares.

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   1) The amount of goods or services sold by a company in a given period. Also known as revenue or sales.
   2) Total volume of trades in a market during a given period.

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turnover UK US /ˈtɜːnˌəʊvər/ noun [U]
UK ACCOUNTING the amount of money that a company gets from sales during a particular period: »

Group turnover rose 2% in the period, compared with last year.

annual/daily/yearly turnover »

The business has an annual turnover of $350,000.

»

The company reported a €500,000 loss on turnover of €4.5 million.

overall/total/worldwide turnover »

Total turnover for the year amounted to £17 billion.

»

first-half/full-year turnover

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high/low/strong turnover

HR the rate at which employees leave a company and are replaced by new employees: »

The company has a staff turnover of around 12% a year.

high/low turnover »

Private nurseries tend to have a high turnover of staff.

»

sales force/CEO turnover

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forced/voluntary turnover

COMMERCE the rate at which a store sells and replaces its stock: fast/high/rapid turnover »

With the high street's fast turnover, popular fashions often sell out within days.

FINANCE, STOCK MARKET the total number and value of shares bought and sold on a stock market in a particular period of time: light/heavy turnover »

The market dropped in heavy turnover.

»

The Trust will generally not exceed a portfolio turnover rate of 100%.

See also ASSET TURNOVER(Cf. ↑asset turnover), CAPITAL TURNOVER(Cf. ↑capital turnover), CASH TURNOVER(Cf. ↑cash turnover), EMPLOYEE TURNOVER(Cf. ↑employee turnover), INVENTORY TURNOVER(Cf. ↑inventory turnover), LABOUR TURNOVER(Cf. ↑labour turnover), SALES TURNOVER(Cf. ↑sales turnover), STOCK TURNOVER(Cf. ↑stock turnover)

Financial and business terms. 2012.

Look at other dictionaries:

  • Turnover — may refer to:BusinessEurope*Turnover is the term for revenue.United States*Turnover is the measure of how quickly inventory is sold. A high turnover means that goods are sold quickly, while a low turnover means that goods are sold more… …   Wikipedia

  • Turnover — Turnover, zu deutsch „Umschlag“ oder „Umsatz“, bezeichnet im Englischen Umsatz (Naturwissenschaft), den Umsatz eines Produktes oder einer Substanz, so bei Stoffwechselvorgängen in der Biologie das Ersetzen einer Art durch eine andere, siehe… …   Deutsch Wikipedia

  • Turnover — Turn o ver, n. 1. The act or result of turning over; an upset; as, a bad turnover in a carriage. [1913 Webster] 2. A semicircular pie or tart made by turning one half of a circular crust over the other, inclosing the fruit or other materials.… …   The Collaborative International Dictionary of English

  • Turnover — Turn o ver, a. Admitting of being turned over; made to be turned over; as, a turnover collar, etc. [1913 Webster] …   The Collaborative International Dictionary of English

  • turnover — [tʉrn′ō΄vər] n. 1. the act or an instance of turning over; specif., a) an upset b) a change from one use, side, opinion, management, etc. to another 2. a small filled pastry made by folding one half of the crust back over the other half and… …   English World dictionary

  • turnover — n. The rate of replacement of goods, funds, or personnel; in a company, the rate at which employees leave and are replaced by others. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • turnover — The process by which any entity in possession of property of the estate is surrenders such property to the bankruptcy trustee (SA Bankruptcy.com) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • turnover — 1650s, action of turning over, from TURN (Cf. turn) + OVER (Cf. over); meaning kind of pastry tart is attested from 1798. Meaning number of employees leaving a place and being replaced is recorded from 1955 …   Etymology dictionary

  • turnover — /turˈnover, ingl. ˈtYːnˌəuvə(r)/ [loc. ingl., comp. di turn «rotazione» e over «in eccesso»] s. m. inv. 1. turno, avvicendamento, rotazione, ricambio, alternanza 2. (di personale) sostituzione 3. giro di affari, volume di affari …   Sinonimi e Contrari. Terza edizione

  • turnover — ► NOUN 1) the amount of money taken by a business in a particular period. 2) the rate at which employees leave a workforce and are replaced. 3) the rate at which goods are sold and replaced in a shop. 4) a small pie made by folding a piece of… …   English terms dictionary