Net turnover is a value that takes on different meanings across business processes, but it generally refers to a figure measuring the arrival of new employees or total sale volume. According to Jonathan Lister for the Houston Chronicle, net turnover can help business owners identify and correct problems in an organization while providing information regarding the company's success on the open market.Continue Reading
In accounting terms, net turnover is annual sales volume minus sales tax, discounts and other costs. According to Lister, this important figure reveals a company's net profit from sales. Business owners may choose to invest this profit back into the company to boost growth.
In regards to business inventory, net turnover is the figure measuring how many times business assets need to be replaced in a given period, notes Lister. These assets may include monetary units, building materials or a company's inventory. This figure lets businesses see which items and services consumers are purchasing and how fast they are buying them. In the realm of human resources, net turnover refers to the number of new employees being hired to replace previous workers within a one-year period. High turnover rates are undesirable because they lead to increased training costs and other expenses.Learn more about Financial Calculations
The operating asset turnover formula is the ratio of a business formation's sales to its assets. It is an efficiency measure to express how well a company is using its assets to generate revenue.Full Answer >
To calculate inventory turnover, divide the cost of goods sold by average inventory for the quarter or for the year. Use this information to determine if inventory turnover supports the number of quarterly or yearly sales. Rapid or slow inventory turnover may signal changes in demand or poor inventory management.Full Answer >
Work out a profit margin by dividing a measure of the company's profitability by the revenue, or sales, figure. There are a few different calculations for profit margins, depending on what data is requiredFull Answer >
A change in net working capital is a result of a change in either the current assets or current liabilities without a similar change in the other figure. The change occurs because the net working capital is calculated as current assets minus current liabilities.Full Answer >