cash turnover的意思|示意

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Cash turnover, also known as cash velocity, is an important financial metric used to measure the frequency at which the total amount of cash is spent and replaced in a given period of time. A company's cash turnover rate is an important indicator of its liquidity, efficiency and overall health.

As a financial metric, the cash turnover rate is the number of times that a company's total cash balance (assets minus liabilities) is used for transactions and reinvested during an accounting period. It is calculated by dividing the total revenue generated by the average cash balance maintained by the company during that period. Cash turnover rate is usually expressed as a percentage.

The higher the cash turnover, the more efficiently a company is using its cash. It also indicates that the company can replenish its cash on a regular basis and is able to meet short-term capital requirements. A low cash turnover rate, on the other hand, may signify that the company is hoarding and not maximizing its cash resources.

It is important to note that the cash turnover rate is highly dependent on the type of business and its cash management practices. For example, companies that rely heavily on credit and debit card payments will typically have higher cash turnover rates compared to companies that depend mostly on cash.

In conclusion, the cash turnover rate is an important financial metric that measures the frequency at which a company's total cash balance is used and replaced in a given period of time. Since the cash turnover rate is highly dependent on the type of business and its cash management practices, it is important for a company to closely monitor and analyze its cash turnover rate in order to ensure that their cash resources are being used efficiently.