What is the meaning of turnover of a company?

What is the meaning of turnover of a company?

Turnover is the total amount of money your business receives as a result of the sales from your goods and/or services over a certain period of time. The calculation doesn't deduct things like VAT or discounts, which is why it's also referred to as 'gross revenue' or 'income'.

What is turnover with example?

Turnover is the rate at which employees leave or the amount of time that it takes for a store to sell all of its inventory. ... An example of turnover is when a store takes, on average, three months to sell all its current inventory and require new inventory.

Is turnover the same as revenue?

Revenue is the money companies earn by selling their products and services, while turnover refers to the number of times businesses make assets or burn through them. Thus, revenue affects a company's profitability, while turnover affects its efficiency.

Is turnover revenue or profit?

Turnover is the total sales made by a business in a certain period. It's sometimes referred to as 'gross revenue' or 'income'. This is different to profit, which is a measure of earnings.

What is turnover and how do you calculate it?

• Voluntary turnover is the rate at which employees willingly leave a company within a given period. To calculate voluntary turnover rate, divide the number of voluntary separations by the average number of employees during the period and multiply by 100.Voluntary Separations × 100 = Voluntary Turnover %. Avg.

What is the formula for calculating turnover?

• Stated as a formula, the calculation looks like: R = S/((B + E)/2), where R is the turnover rate, S is the number of separated employees and B and E represent the beginning and ending size of your workforce. For example, if you have 75 employees at the start of the period and 85 at the end, your average number of employees is 80.

What does turnover mean in business definition?

• Turnover is an accounting concept that calculates how quickly a business conducts its operations.
• The most common measures of corporate turnover look at ratios involving accounts receivable and inventories.
• In the investment industry,turnover is defined as the percentage of a portfolio that is sold in a particular month or year.

What is the meaning of the word turnover?

• Definition of turnover. (Entry 1 of 3) 1a(1) : the amount received in sales for a stated period. (2) : the ratio of sales for a stated period to average inventory.