Final answer:
To calculate turnover, use the formula Sales/Revenue for business turnover, Cost of Goods Sold/Average Inventory for inventory turnover, or Number of Employees Leaving/Average Number of Employees for employee turnover.
Step-by-step explanation:
To calculate turnover, you need to understand what type of turnover you are referring to. In a general business context, turnover can mean the total sales made by a company over a certain period. The main formula for calculating business turnover is Turnover = Sales / Revenue. However, there are other types of turnovers, such as inventory turnover, which is calculated by Cost of Goods Sold / Average Inventory, or employee turnover, which is Number of Employees Leaving / Average Number of Employees over a certain period. It's important to note that each type of turnover has its specific way of calculation.An example for business turnover calculation: If a company's total sales or revenue for a year is $1,000,000, then the turnover for that year is $1,000,000. For inventory turnover, if the cost of goods sold is $500,000 and the average inventory is valued at $100,000, then the inventory turnover rate is 5. This means the company replaces its inventory five times a year. For employee turnover, if 10 employees left the company in a year and the average number of employees during the year was 100, then the turnover rate would be 10%.In conclusion, turnover calculations depend on the specific turnover type being referred to, and using the correct formula is essential to obtain accurate results. Record the calculations on a note pad for a thorough understanding, as per the discussion suggestion.