What is the company's fluctuation?
The term "company turnover" can have several different meanings that can refer to income, usefulness of assets or employees, depending on context. In all cases, the number includes the number of complete exchanges within the given accounting cycle, whether employees of the company or products for sale. The context may determine whether low or high turnover is more desirable, and companies can inform about key numbers in the annual reports and other published investors and employees to provide them with information about the company's overall health. The company with 30 employees where 15 leaves every quarter is high. Conversely, if one employee leaves every five years, the company has a low turnover and overall longevity. This form of company turnover is usually considered to be the most enormous when it is low because it suggests that the company is a pleasant place for work and employees do not want to leave.
Some regions use this term to describe total income. The company's high turnover indicates a large volume of sales, while low turnover may mean that the company has difficulty moving products and services. One of the advantages of accounting in terms of turnover is the ability to explain a company that is sold in a small volume but with a high value. Hearing that the company landed one sale per year is not very impressive, unless this sale becomes something like a very expensive cruise ship and the company actually has a very decent degree of turnover.
Another form of turnover is the turnover of assets where accountants look at how the company uses assets effectively. This is determined by the distribution of the total income by the value of the asset. The high turnover turnover shows that companies are moving assets rapidly to be profitable, while the low -turn -by -point illuminates that society will retain them. However, this does not necessarily have a sign of economic problems as society may be a focus in the futureFor investment and growth period to improve income.
In discussions on the turnover of the company, it is important to find out what is meant by this term, because it can be so variable. Sometimes it is obvious from context; For example, in discussions on employment conditions, people usually mean employee turnover when they discuss the level of turnover. If the meaning is not obvious, it may be appropriate to ask for clarification. It can also help find out what types of measures are used to calculate turnover, as this may affect the importance of data.