Turnover Definition

In business, turnover or turnover rate is the ratio of the number of times an asset is sold or replaced over a specific time period. Turnover is a measure of activity for various types of businesses. For example, in manufacturing, it is a measure of the number of times inventory is sold or replaced over a set period; usually one year. In retailing, turnover reflects the number of times inventory is sold during the course of a year.Service businesses usually define turnover as the revenue generated by selling services divided by the average revenue for a specific time period.