Definition Turnover Vs Revenue

Turnover is a broad term which is used in different contexts in different disciplines.

Definition turnover vs revenue. Revenue is the income generated from making the sales. Revenue is the income which the company generates by conducting its business activities of selling goods and services to its customers for a price. In the united kingdom the term turnover is used for the same purpose. First turnover represents how many times a company goes through assets such as inventory or cash.

Nevertheless there are differences and some of these are vital for smes in the uk to know. Thus generally with regard to company s top line sales is recorded as the very first item on the income statement revenue and turnover are regarded as synonyms. Revenue and turnover are two accounting terms that are often used interchangeably. However revenue represents the money a company earns by selling its goods and services for a price to the consumers.

In many situations turnover and revenue describe such similar ideas that they can be used interchangeably without problems. At first glance the premise of turnover vs revenue seems simple. The word turnover as well as revenue is many times used in each other s place and many times they even mean the same. How to use turnover in a sentence.

They do have a connection however as companies can determine how much cash they go through in order to generate specific sales revenue. And lastly profit from that sales is the net amount left with the company after deducting all the expenses from the revenrelated to that sales directly and indirectly. Turnover means total sales of a company in a particular time period. However a business can also generate revenue without having turnover and it can have.

Turnover refers to how many times a company burns through assets such as cash inventory workers etc. Revenue is the total value of goods or services sold by the business. Turnover describes how many times the company burns using its assets. Turnover definition is the amount received in sales for a stated period.

Revenue and turnover sometimes refer to the same thing such as when a company earns revenue through sales. Turnover is the income that a firm generates through trading goods and services. On the other hand the word revenue is specific in nature which refers to the proceeds received by the company in a particular period. Second revenue is the money a company earns from consumers who purchase the business goods and services.

In the united states businesses use the term revenue with regard to how much income a company generates.