What is Turnover? Definition or Meaning

A company’s turnover is a measure of the sales generated from selling goods or providing services. The faster the company manages to sell its inventory, the quicker it will collect cash.

For example…

Mary is a franchisee of a popular pizza chain. Her franchise’s turnover is the amount of cash she generates from the sales of her pizza store. The pizza chain itself will measure its turnover by adding up the sales generated from all its franchisees.