Frequency or the rate at which the ( inventory , credit , employees ) in a business are getting replaced or replenished . It gives a fair indication if the item is being static and how efficiently the space is being utilized .
It gives a complete picture of the balance sheet and shows effectively the firm is utilizing its current assets which cannot be made out by merely looking at its magnitude only. A higher value of turnover is usually preferable but not always Turnover of a company is the annual revenue generated from its business and non business activities. Example
Hence, this concludes the definition of Turnover along with its overview.
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