Friends,
Please help me out...is there anything called Sales Turnover Ratio?????
3 Replies
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14497 Points)
Replied 10 January 2011
turnover ratio
1. A measure of the number of times a company's inventory is replaced during a given time period. Turnover ratio is calculated as cost of goods sold divided by average inventory during the time period. A high turnover ratio is a sign that the company is producing and selling its goods or services very quickly.
2. In the case of mutual funds, the percentage of a fund's assets that have changed over the course of a given time period, usually a year. Turnover ratio for a mutual fund is calculated by dividing the average assets during the period by the lesser of the value of purchases and the value of sales during the same period. Mutual funds with higher turnover ratios tend to have higher expenses.
ashish gupta
( student)
(1922 Points)
Replied 11 January 2011
tbere is nothing called sales turnover ratio
venky
(Assistant Manager)
(21 Points)
Replied 14 February 2012
In general, Turnover ratio is a tool to measure the performance of the relevant thing(like debt recovery in debtors turnover, or inventory replacement with Inventory turnover ratio)
Note: all these turnovers are calculated with sales as base..
Now, coming to sales turnover, It refers to the performance of the company's sales process.
Therefore it should be Cost of Goods sold/Total sales
Please revert if not convinced with my answer
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