To calculate inventory turnover, you need to know two things: the cost of goods sold and the average inventory. The cost of goods sold is the total value of all the merchandise that your company sells in a given period. The average inventory is the average value of all the merchandise th...
PPE turnover ratio, or fixed asset turnover, tells you how many dollars of sales your company receives for each dollar invested inproperty, plant, and equipment (PPE). How to calculate PPE turnover depends on all three of these assets. In other words, this formula is used to understand h...
An employee turnover rate, also known as attrition rate, is the percentage of employees who have left the company in a given period. You can use it to quickly compare how your company is doing against the national average, which is12% to 15% each year. To calculate turnover rat...
To crack the code and discover how to calculate inventory turnover, all you need is a couple of simple formulas:Cost of Goods Sold (COGS) / Average Inventory Value = Inventory turnover ratio In addition to using financial metrics, you can also calculate inventory turnover ratios by looking ...
However, employee turnover rate doesn’t need to be a guessing game. With the right data, you can calculate this rate so that you aren’t caught off-guard by sudden spikes in turnover. This information can also tell you which employee retention trends can help right the ship and keep ...
The formula to calculate Accounts Receivable Turnover is to add the beginning and ending accounts receivable to get the average accounts receivable for the period and then divide it into the net credit sales for the year. Net Annual Credit Sales ÷ ((Beginning Accounts Receivable + Ending Account...
Learn how to calculate and improve employee retention and turnover rates. Discover strategies to boost retention and reduce attrition.
Annual turnover, also called 'gross revenue' or 'total sales', refers to the total income made by a business over a year. Find out more here.
A company could hone in even further and exclude employees who retired from the calculation. Companies can calculate turnover rate on a monthly, quarterly or annual basis, or measure year-to-date turnover. Evaluating turnover rates over different periods of time can help the business predict ...
How to calculate your employee turnover rate Employee turnover rates are measured and evaluated over a set period – typically one year. Businesses often calculate the employee turnover rate for the entire company, but you can also break it down by individual departments, teams or demographics. ...