A Business Encyclopedia

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:

turnover ratios-final

  1. Inventory Turnover Ratio
  2. Debtors Turnover Ratio
  3. Average Collection period
  4. Fixed Asset Turnover Ratio
  5. Total Assets Turnover Ratio
  6. 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.

Leave a Reply

Your email address will not be published. Required fields are marked *


Related pages

difference between forwards and futuresexplain elasticity of demandstrategic hrm planning processwhat is liquidity ratio formulaformula for capmsensibility analysisnational savings certificate maturitywhat is oligopoly competitionstages of collective bargainingexplain scatter diagramdemand pull inflation graph explanationwalter dividend modelbases for market segmentationexplain indifference curvestock turnover ratio examplequick ratio meansstructure unemploymentdefinition of elastic and inelasticsubstitution method examplemeaning of probability in hindiethnocentricism definitiondefinition of conglomerate in economicsprofit to sales ratio formulaquantitative market research exampleshertzbergs theoryelastic demand economicsmeaning of wholesaler and retailersematic definitionforclose definitionquota economics definitionsebi definitionsources of risk in capital budgetinghow to do spearmans rankformula for cash ratioregiocentric companiesdefine the term oligopolydefine demographic segmentationclassical theory scientific managementsealed bid pricing definitionansoff matrix disadvantageshedging meaning in financelpp examplesdefinition guerrillameaning of debentures in financedefinition of geographic segmentationqueuing theory definitionwindow joharidefinition of buyer behaviourskinner reinforcement theoryproduct mix width definitiondealer placed commercial paperdepository deftrade cycle meaningdefine tall organisational structurebalanced scorecard in hrmsegmentation bases definitiondefine denotative languagecapital asset ratio formuladefine restructureaccelerator principlepearson correlation formulameaning of inductoligopolistic competition definitionmonopoly and oligopoly market structuresmultistage sampleretrenchment meansethnocentrism meangross profit margin ratiodepreciation definition in economicsseven c's of effective communication