Definition Turnover Of Sales

Sales turnover is the total amount of revenue generated by a business during the calculation period.

Definition turnover of sales. Means the aggregate amount for which goods are sold or supplied or distributed by a dealer either directly or through another whether on his own account or on account of others whether for cash or deferred payment or other valuable consideration. The term is often just referred to as sales or net sales which means revenues without vat. Sales turnover is a measure for evaluating how much of its products or services a business sells within a defined period. The company has seen a remarkable increase in its retail sales turnover.

Turnover is an accounting concept that calculates how quickly a business conducts its operations. The concept is useful for tracking sales levels on a trend line through multiple measurement periods in order to spot meaningful changes in activity levels. A cycle of purchase sale and replacement of a stock of goods. Define turnover of sales.

The amount includes only revenue that is generated from daily operations not non operating revenue. Want to learn more. Sales turnover represents the value of total sales provided to customers during a specified time period which is usually one year. The total amount of money that a company receives from the sale of products or services in a particular period of time.

Here s how to calculate the sales turnover ratio and more. Most often turnover is used to understand how quickly a company collects cash from accounts. The ratio of sales for a stated period to average inventory. The calculation period is usually one year.