# Turnover Ratios

**Definition:** The **Turnover Ratios** measure the efficiency of investments made by the firm in the form of revenues and the cost of sale generated during a period of time. These ratios show the relationship between the revenues or cost of sales generated due to the investment activities undertaken.

**Some important Turnover Ratios are:**

**Inventory Turnover Ratio****Debtors Turnover Ratio****Average Collection period****Fixed Asset Turnover Ratio****Total Assets Turnover Ratio****Capital Employed Turnover Ratio**

The turnover ratios are also called as activity ratios or asset management ratios; that shows a relationship between sales and assets. These ratios are expressed in terms of integers or times.