turnover

Definition

Either the total sales a company racks up in a period, or the depressing rate at which employees flee for greener pastures—context is everything. In finance, high turnover is great; in HR, it's a red flag the size of a building. It can also refer to how quickly inventory or assets get cycled through, because apparently one word needs to do the work of five.

Example Usage

The company's annual turnover hit $5 million, but their employee turnover hit 40%, suggesting the money wasn't trickling down very effectively.

Source: Business and finance terminology

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capitalism

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cash conversion cycle

The time between paying suppliers and collecting from customers, measured in days. Negative is magical—you get paid before paying bills, turning working capital into a profit center. Positive means you're funding your customers' purchases with your own money.

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Cash Flow

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basis point

One hundredth of one percent (0.01%), because apparently regular percentages weren't confusing enough for finance professionals. When your mortgage rate increases by 25 basis points, congratulations—you're paying 0.25% more.

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