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Explanation of the turnover rate

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Can you please define turnover rate and provide an example of such?

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Solution Summary

Turnover rate is defined and explained with formulas and a sample problem in this solution.

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First of all turnover rate is an activity analysis ratio. Activity ratios show how effectively a firm's assets are being managed. Asset turnover ratio is one of the measures of activity. It is also called as asset turnover.

Assets turnover ratio: sales / average total assets

Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2

For example, if a fund's ...

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Umut Oltulu, MBA
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  • BSc, Dokuz Eylul University
  • MBA, Texas A&M University-Kingsville
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