Turnover

What Does Turnover Mean?
1. In accounting, the number of times an asset is replaced during a financial period.

2. The number of shares traded for a period as a percentage of the total shares in a portfolio or of an exchange.

Investopedia explains Turnover
1. In accounting, turnover often refers to inventory or accounts receivable. A quick turnover is desired because it means that inventory is not sitting on the shelves for too long.

2. In a portfolio, a small turnover is desired because it means the investor is paying less in commissions to the broker. It is called "churning" when a broker unethically generates numerous trades solely in order to increase commissions.

Related Terms

Accounts Receivable
Asset
Asset Performance
Asset Turnover
Churning
Inventory Turnover
Tax-Efficient Fund
Working Capital Turnover
More Related Terms

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