What is Segment Turnover ?
Segment Turnover indicates how efficiently inventory is managed within the segment. Segment turnover ratios provide insights into how effectively a segment is utilizing its assets (or inventory) to generate revenue. Higher turnover ratios generally indicate better efficiency and effective utilization of resources. In some cases, "segment turnover" might specifically refer to inventory turnover within a segment. Inventory turnover measures how many times a segment's inventory is sold or used up during a period. Segment turnover, whether referring to revenue-to-asset turnover or inventory turnover, is a valuable metric for assessing the efficiency and performance of business segments within a company. It provides insights into how effectively segments utilize assets or manage inventory to generate revenue, aiding in performance evaluation, resource allocation, and strategic decision-making. However, careful interpretation and consideration of context are essential to derive meaningful insights.
How to Calculate Segment Turnover?
Segment Turnover calculator uses Segment Turnover = Segment Revenue/Segment Assets to calculate the Segment Turnover, Segment Turnover measures how efficiently a segment utilizes its assets to generate revenue. Segment Turnover is denoted by St symbol.
How to calculate Segment Turnover using this online calculator? To use this online calculator for Segment Turnover, enter Segment Revenue (SR) & Segment Assets (SA) and hit the calculate button. Here is how the Segment Turnover calculation can be explained with given input values -> 1.0625 = 170/160.