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How to Calculate Employee Turnover. The basic formula for calculating employee turnover is: Step 1: Find your average number of employees. ((# of employees beginning of year) + (# of employees end of the year))/2 = average # employees. Step 2: Find the turnover rate. (the # of employees who left your company) / (Step 1âs answer) = turnover rate
The inventory turnover ratio is calculated by dividing the cost of goods sold for the period by the average inventory for the period. For instance, if cost of goods sold was $10,000 for the quarter and average inventory was $5,000, $10,000 divided by $5,000 would equal an inventory turn ratio of 2.Two inventories per quarter means a company takes one and one-half months to use and replenish on-hand inventory.ow inventory turnovers generally mean a company is holding too much inventory compared to its sales. Decreasing inventory turnover often means sales are decreasing below expected levels, although that is not always the case.