Turnover has several meanings, depending on the context in which it is viewed. In some parts of the world, turnover is used as another word for revenue. It is also used to name a measure that shows how quickly inventory is sold, or in other words, how long does an average item remain in inventory. High turnover is good while low turnover is often the sign of inefficiency since unsold inventory is an expense.
Asset turnover is a financial ratio that measures how efficient a company is in using her assets to generate sales income or revenue.
In the terms of funds and financial companies, turnover represents the number of times per year an average dollar of assets is reinvested.
In the context of employment and labor market, turnover is the rate at which the employer loses and gains employees. In simpler terms, it tells how long the employees are staying in a company. It can be measured in a single company or in a whole industry, depending on the needs of the interested party. In this case, high turnover is bad because it can mean that the skilled employees are leaving before adequate replacements can be found or trained and therefore it can be damaging to the company’s productivity.