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Rohit Jajodia
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Accountancy
Turnover Ratios
 Turnover Ratios
● Turnover ratios measures the company’s efficiency in
employing its assets to generate revenue.
● The larger the turnover ratio, the better as it shows the the
company is optimally utilizing its assets as resources to earn
revenue
● Turnover ratios are calculated by dividing the revenues from
average asset balance
● It is also termed as efficiency ratio because it shows the
company’s efficiency in conversion of asset into sales which in
turn reflects the company ROI
 ACTIVITY RATIOS

● Debtors Turnover
● Inventory Turnover
● Creditors Turnover
● Working Capital Turnover
● Asset Turnover
● Fixed Asset Turnover