Net turnover is a value that takes on different meanings across business processes, but it generally refers to a figure measuring the arrival of new employees or total sale volume. According to Jonathan Lister for the Houston Chronicle, net turnover can help business owners identify and correct problems in an organization while providing information regarding the company's success on the open market.Know More
In accounting terms, net turnover is annual sales volume minus sales tax, discounts and other costs. According to Lister, this important figure reveals a company's net profit from sales. Business owners may choose to invest this profit back into the company to boost growth.
In regards to business inventory, net turnover is the figure measuring how many times business assets need to be replaced in a given period, notes Lister. These assets may include monetary units, building materials or a company's inventory. This figure lets businesses see which items and services consumers are purchasing and how fast they are buying them. In the realm of human resources, net turnover refers to the number of new employees being hired to replace previous workers within a one-year period. High turnover rates are undesirable because they lead to increased training costs and other expenses.Learn More
To calculate inventory turnover, divide the cost of goods sold by average inventory for the quarter or for the year. Use this information to determine if inventory turnover supports the number of quarterly or yearly sales. Rapid or slow inventory turnover may signal changes in demand or poor inventory management.Full Answer >
Divide the number of employees who left the organization during that specified time period by the average number of employees employed during the same period of time to find the employee turnover rate percentage. The lower the percentage, the better an organization is at retaining employees.Full Answer >
The net cost of a good or service is the total cost of the product minus any benefits gained by purchasing that product, according to AccountingTools. It differs from the gross cost, which is just the total cost of a product.Full Answer >
Net monthly income refers to the paycheck employees receive from their employers. Employers deduct taxes and Social Security contributions before creating checks for their employees.Full Answer >