Turnover Ratio Formula

Fx Copy
LaTeX Copy
Turnover Ratiois a financial metric that assesses how efficiently a company utilizes its assets, typically expressed as a ratio or percentage. Check FAQs
TR=GFCI
TR - Turnover Ratio?G - Gross Annual Sales?FCI - Fixed Capital Investment?

Turnover Ratio Example

With values
With units
Only example

Here is how the Turnover Ratio equation looks like with Values.

Here is how the Turnover Ratio equation looks like with Units.

Here is how the Turnover Ratio equation looks like.

5.7143Edit=80000Edit14000Edit
You are here -
HomeIcon Home » Category Engineering » Category Chemical Engineering » Category Plant Design and Economics » fx Turnover Ratio

Turnover Ratio Solution

Follow our step by step solution on how to calculate Turnover Ratio?

FIRST Step Consider the formula
TR=GFCI
Next Step Substitute values of Variables
TR=8000014000
Next Step Prepare to Evaluate
TR=8000014000
Next Step Evaluate
TR=5.71428571428571
LAST Step Rounding Answer
TR=5.7143

Turnover Ratio Formula Elements

Variables
Turnover Ratio
Turnover Ratiois a financial metric that assesses how efficiently a company utilizes its assets, typically expressed as a ratio or percentage.
Symbol: TR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
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.
Symbol: G
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
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.
Symbol: FCI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Cost Estimation category

​Go Total Capital Investment
TCI=FCI+WCI
​Go Fixed Capital Investment
FCI=TCI-WCI
​Go Working Capital Investment
WCI=TCI-FCI
​Go Capital Cost of Project with Capacity Q2 using Sixth Tenth Rule
C2=C1((Q2Q1)n)(I2I1)

How to Evaluate Turnover Ratio?

Turnover Ratio evaluator uses Turnover Ratio = Gross Annual Sales/Fixed Capital Investment to evaluate 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 TR symbol.

How to evaluate Turnover Ratio using this online evaluator? To use this online evaluator for Turnover Ratio, enter Gross Annual Sales (G) & Fixed Capital Investment (FCI) and hit the calculate button.

FAQs on Turnover Ratio

What is the formula to find Turnover Ratio?
The formula of Turnover Ratio is expressed as Turnover Ratio = Gross Annual Sales/Fixed Capital Investment. Here is an example- 5.714286 = 80000/14000.
How to calculate Turnover Ratio?
With Gross Annual Sales (G) & Fixed Capital Investment (FCI) we can find Turnover Ratio using the formula - Turnover Ratio = Gross Annual Sales/Fixed Capital Investment.
Copied!