what is a turnover ratio in a business 
the turnover ratio has a variety of meanings outside of the investing world a turnover ratio in business is a measurement of the firm s efficiency it is calculated by dividing annual income by annual liability it can be applied to the cost of inventory or any other business cost unlike in investing a high turnover ratio in business is almost always a good sign it may show for example that the business is selling its stock out as quickly as it can get it in 