Question

Can gross profit exceed turnover?

Answer 1

Answer:

For example, a business that has inventory turnover of four must sell all of its on-hand inventory four times per year in order to generate its annual sales volume. ... There is little relation between turnover and gross profit.

hope that helps ✌

Answer 2

Explanation:

There are some variations on the terms just described. Turnover can also refer to the amount of assets or liabilities that a business cycles through in comparison to the sales level that it generates. For example, a business that has inventory turnover of four must sell all of its on-hand inventory four times per year in order to generate its annual sales volume. This information is useful for determining how well a company is managing its assets and liabilities. If a business can increase its turnover, it can theoretically generate a larger profit, since it can fund operations with less debt, thereby reducing interest costs.

I hope that's helpful ✌