Turnover

Meaning & Definition

Turnover

Turnover, commonly known as revenue, is the amount of money made by a company in a particular time period through its standard business activities. Money taken in from other, non-core activities (e.g. land rental) is often recorded as non-operating revenue. In non-profit organizations and charities, turnover is often called gross receipts.

Turnover differs from profit, which is turnover minus expenditure.

Most businesses – large and small – will get asked what their turnover is by several people, from investors to insurers. For instance, if you start building a business insurance quote with Superscript, they will ask you what your annual turnover is so that they can work out the right level of cover for you.

Frequently Asked Questions (FAQ's)

  1. What is Turnover?

    Turnover refers to the total amount of revenue your org earns from standard business activities like sales of goods and/or services over a defined period of time. When calculating turnover, you would also include the tax and VAT charges and/or discounts. This will give you the turnover, or as it is also called, the gross revenue.

  2. How do you calculate turnover?

    Turnover is critical as it indicates the health of a business. With an accurate record of your sales information, calculating the turnover revenue is just a matter of quick addition.

  3. Is turnover a revenue?

    Turnover, unlike turnover rate, refers to the money that an organization makes over a defined period of time through its standard business activities. Yes, it is a revenue. It is also called company income or gross revenue.

  4. Is turnover equal to sales?

    Turnover is defined as the total sales revenue collected over a defined period of time.