2. In the case of mutual funds, the percentage of a fund'sassets that have changed over the course of a given time period, usually a year. Turnover ratio for a mutual fund is calculated by dividing the average assets during the period by the lesser of the value of purchases and the value of sales during the same period. Mutual funds with higher turnover ratios tend to have higher expenses.
In general, Turnover ratio is a tool to measure the performance of the relevant thing(like debt recovery in debtors turnover, or inventory replacement with Inventory turnover ratio)
Note: all these turnovers are calculated with sales as base..
Now, coming to sales turnover, It refers to the performance of the company's sales process.
Therefore it should be Cost of Goods sold/Total sales
Please revert if not convinced with my answer
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