Employee Turnover Ratio| Financial Sensation

It is Activity ratio
Calculates if sale is adequate in relation to the number employees
Employee Turnover Ratio = net sale / employee
It also tells whether an increase in the number of employees will eventually lead to an increase in revenue
A low ratio in relation to other companies in the same industry may indicate inefficient use of employees
A higher ratio in comparison to other companies would be a positive indicator
Value should be high

Employee Turnover