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Sorry to ask this (maybe) silly question but I need to know it for explanation purposes.
What do the turnover ratios mean such as inventory turnover, receivable turnover and payable turnover, etc?
For example, what does labour turnover mean?
Thank you
They all mean different things.
Labour turnover is measuring how quickly workers leave and need replacing.
Have you watched our free lectures on all of this?
1) Sales Turnover ratio is a measure to see how much money is brought in through sales over a time period.
2) Inventory Turnover is a measure to see how much of the number of times inventory is sold or replaced.
3) Receivable Turnover is a measure to see how effective a company is in extending credit as well as collecting debts
4) Payable Turnover is a measure to see how many times a company pays off its accounts payable during a period.
Now it is correct???
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