Finance Dictionary : Turnover


Delve into the world of business finance with an exploration of turnover, a key indicator reflecting a company's financial performance.



Turnover: Understanding Business Financials


Turnover, often used interchangeably with revenue, is a fundamental financial metric that represents the total income generated by a business from its regular operations. It encompasses all sales of goods and services during a specific period, typically excluding any deductions, discounts, or returns. Turnover is a pivotal indicator of a company’s economic health and productivity, reflecting its ability to convert investments into sales and earnings.


Companies analyze turnover to assess their performance, evaluate market demand, and make informed decisions. Understanding this metric is crucial for financial planning, budgeting, and strategic growth. It provides valuable insights into the overall economic activity and viability of an organization.


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