Turnover has two common meanings in business. First, it refers to total revenue or sales a company generates over a specific period.
Second, turnover measures how quickly things are replaced. Inventory turnover tells you how fast a company sells and restocks its goods. Employee turnover shows how frequently staff leave and are replaced.
For example, if a store has $100,000 in average inventory and sells $800,000 worth of goods annually, its inventory turnover ratio is 8 — meaning it cycles through its entire stock 8 times a year.