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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?

    © BrainMass Inc. brainmass.com June 3, 2020, 5:36 pm ad1c9bdddf
    https://brainmass.com/business/asset-turnover/explanation-turnover-rate-32443

    Solution Preview

    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 ...

    Solution Summary

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

    $2.19

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