what is sales turnover

Sales turnover refers to the total amount of products or services sold by a company over a specific period, typically an accounting year. It is a measure of the company's sales activity and is often used to assess the company's performance and track sales revenue. The sales turnover rate can be calculated using the formula: Sales Turnover Rate=Total SalesAverage Inventory\text{Sales Turnover Rate}=\frac{\text{Total Sales}}{\text{Average Inventory}}Sales Turnover Rate=Average InventoryTotal Sales​ This rate helps businesses understand how efficiently they are selling their inventory. Overall, sales turnover is a key metric for evaluating a company's sales performance and revenue generation