单词 | rate of turnover |
释义 | rate of turnover The frequency, expressed in annual terms, with which some part of the assets of an organization is turned over. The total sales revenue is often referred to as turnover and in order to see how frequently stock is turned over, the sales revenue (or if a more accurate estimate is needed the cost of goods sold) is divided by the average value of the stock to give the number of times the stock is turned over. This provides a reasonable measure in terms of stock. However, some accountants divide the sales figure by the value of the fixed assets to arrive at turnover of fixed assets. This is less realistic, although it does express the relationship of sales to the fixed assets of the organization, which in some organizations could be significant. |
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