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.
Related information about turnover ratio:
- Turnover Ratio Definition | Investopedia
The percentage of a mutual fund or other investment vehicle's holdings that have been "turned over" or replaced with other holdings in a given year. The type of ...
- Receivables Turnover Ratio Definition | Investopedia
An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, ...
- Inventory Turnover Definition | Investopedia
A ratio showing how many times a company's inventory is sold and replaced over a period. the The days in the period can then be divided by the inventory ...
- What is turnover ratio? definition and meaning
Definition of turnover ratio: 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 ...
- Turnover Ratio
Turnover Ratio - Definition for Turnover Ratio from Morningstar - This is a measure of the fund's trading activity, which is computed by taking the lesser of ...
- Receivables turnover ratio - Wikipedia, the free encyclopedia
Receivable Turnover Ratio is one of the accounting activity ratios, a financial ratio . This ratio measures the number of times, on average, receivables (e.g. ...
- Inventory turnover - Wikipedia, the free encyclopedia
Cost of sales yields a more realistic turnover ratio, but it is often necessary to use sales for purposes of comparative analysis. Cost of sales is considered to be ...
- Stocks traded, turnover ratio (%) | Data | Table
Stocks traded, turnover ratio (%). Turnover ratio is the total value of shares traded during the period divided by the average market capitalization for the period.