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Turnover Ratio Calculator

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✖Gross Annual Sales in $ terms refers to the total amount of money generated by a business from the sale of goods or services during a specific fiscal year.ⓘ Gross Annual Sales [G]			+10% -10%
✖Fixed Capital Investment in $ term referred to as (CapEx), represents the funds that a company allocates for the acquisition, construction, expansion, or improvement of long-term physical assets.ⓘ Fixed Capital Investment [FCI]			+10% -10%

✖Turnover Ratiois a financial metric that assesses how efficiently a company utilizes its assets, typically expressed as a ratio or percentage.ⓘ Turnover Ratio [T_R]

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Formula

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Turnover Ratio

Formula

T R = \frac{G}{FCI}

Example

5.714286 = \frac{80000}{14000}

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Turnover Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Turnover Ratio = Gross Annual Sales/Fixed Capital Investment
T_R = G/FCI
This formula uses 3 Variables

Variables Used

Turnover Ratio - Turnover Ratiois a financial metric that assesses how efficiently a company utilizes its assets, typically expressed as a ratio or percentage.
Gross Annual Sales - Gross Annual Sales in $ terms refers to the total amount of money generated by a business from the sale of goods or services during a specific fiscal year.
Fixed Capital Investment - Fixed Capital Investment in $ term referred to as (CapEx), represents the funds that a company allocates for the acquisition, construction, expansion, or improvement of long-term physical assets.

STEP 1: Convert Input(s) to Base Unit

Gross Annual Sales: 80000 --> No Conversion Required
Fixed Capital Investment: 14000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

T_R = G/FCI --> 80000/14000

Evaluating ... ...

T_R = 5.71428571428571

STEP 3: Convert Result to Output's Unit

5.71428571428571 --> No Conversion Required

FINAL ANSWER

5.71428571428571 ≈ 5.714286 <-- Turnover Ratio

(Calculation completed in 00.004 seconds)

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< Cost Estimation Calculators

Capital Cost of Project with Capacity Q2 using Sixth Tenth Rule

Go Capital Cost of Project with Capacity Q2 = Capital Cost of Project with Capacity Q1*((Capacity of Equipment 2/Capacity of Equipment 1)^(Value of Index))*(Cost Index 2/Cost Index 1)

Working Capital Investment

Go Working Capital Investment = Total Capital Investment-Fixed Capital Investment

Total Capital Investment

Go Total Capital Investment = Fixed Capital Investment+Working Capital Investment

Fixed Capital Investment

Go Fixed Capital Investment = Total Capital Investment-Working Capital Investment

Turnover Ratio Formula

Turnover Ratio = Gross Annual Sales/Fixed Capital Investment
T_R = G/FCI

What is Cost Estimation ?

Cost estimation is the process of estimating the total cost, typically in monetary terms, required to complete a project, construct a facility, develop a product, or provide a service. It is a critical aspect of project management, business planning, and decision-making. Cost estimation serves various purposes, including budgeting, financial planning, and assessing the feasibility of a project. Here are the key components and considerations of cost estimation.

What is Turnover?

Turnover, in a general business context, refers to the rate at which a particular resource, such as inventory, accounts receivable, or employees, is replaced, replenished, or utilized within a specified period. It is a key metric used to assess the efficiency and effectiveness of various aspects of a business's operations. For example, inventory turnover measures how quickly a company sells and replaces its inventory, accounts receivable turnover gauges how efficiently a business collects payments from customers, and employee turnover assesses the frequency at which employees leave a company and are replaced. The turnover ratio is often calculated by dividing the relevant metric (such as sales or the number of employees) by the average amount of the resource during the period, providing insights into the company's operational performance and management effectiveness.

How to Calculate Turnover Ratio?

Turnover Ratio calculator uses Turnover Ratio = Gross Annual Sales/Fixed Capital Investment to calculate the Turnover Ratio, The Turnover Ratio is a financial metric that measures the efficiency of an investment by comparing the gross annual sales to the fixed capital investment. Turnover Ratio is denoted by T_R symbol.

How to calculate Turnover Ratio using this online calculator? To use this online calculator for Turnover Ratio, enter Gross Annual Sales (G) & Fixed Capital Investment (FCI) and hit the calculate button. Here is how the Turnover Ratio calculation can be explained with given input values -> 5.714286 = 80000/14000.

FAQ

What is Turnover Ratio?

The Turnover Ratio is a financial metric that measures the efficiency of an investment by comparing the gross annual sales to the fixed capital investment and is represented as T_R = G/FCI or Turnover Ratio = Gross Annual Sales/Fixed Capital Investment. Gross Annual Sales in $ terms refers to the total amount of money generated by a business from the sale of goods or services during a specific fiscal year & Fixed Capital Investment in $ term referred to as (CapEx), represents the funds that a company allocates for the acquisition, construction, expansion, or improvement of long-term physical assets.

How to calculate Turnover Ratio?

The Turnover Ratio is a financial metric that measures the efficiency of an investment by comparing the gross annual sales to the fixed capital investment is calculated using Turnover Ratio = Gross Annual Sales/Fixed Capital Investment. To calculate Turnover Ratio, you need Gross Annual Sales (G) & Fixed Capital Investment (FCI). With our tool, you need to enter the respective value for Gross Annual Sales & Fixed Capital Investment and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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