In France, "turnover" primarily refers to a company's total revenue or sales volume, known as chiffre d'affaires (CA). It is the total value of goods or services sold before taxes. In the context of human resources, it refers to staff turnover, often called renouvellement de personnel or sometimes directly called turnover in professional settings.
Turnover is the total revenue that a company generates from the sale of its products or services within a certain period of time, without deducting the costs incurred in creating the products or providing the services.
Turnover includes sales of goods or services and any other business activities that bring in money. Businesses in the UK report turnover in financial statements and use it to calculate taxes such as value-added tax (VAT). Turnover is also a useful metric for comparing growth and tracking performance over time.
A 20% turnover means 20% of something has been replaced or sold within a period, commonly referring to employee turnover (20% of staff left) or portfolio turnover (20% of investment assets traded), both indicating the rate of change, with high rates often signaling issues like poor culture or active (potentially costly) trading, though low turnover in investments often suggests a buy-and-hold strategy.
What does turnover mean? Turnover is the total amount your business earns from selling goods or providing services. Think of it as your sales figure before any costs are deducted. Formally, it's the amount invoiced to customers, minus VAT and any discounts.
When a lease expires and an existing renter leaves, we call that a “turnover”. The unit has to be made ready for a new resident. Apartment turnovers are a normal part of managing a property. In US multifamily real estate, on average, 42% of the properties are going to turn over in a given year.
The government levies taxes on all goods and services that are provided. This is referred to as turnover tax (also known as VAT or, in Dutch, BTW). At the moment, the highest rate is 21% and the lowest 9%.
Turnover is not necessarily the same as income. Although turnover and income can refer to the same concept – specifically the total sales made by a business in a given period – turnover does not include other sources of income like interest or investments.
Your employee turnover rate is the percent of employees who leave the company within a specific time period. You might calculate it by month, quarter or year. You can include voluntary resignations, dismissals and retirements in your calculations.
To calculate turnover (employee churn), you divide the number of employees who left during a period by the average number of employees in that same period, then multiply by 100 for a percentage, using the formula: (Leavers / Average Employees) x 100, where average employees are (Start Count + End Count) / 2.
Employee turnover is often viewed as a negative thing, but not all turnover is bad. In fact, healthy turnover can be a sign of growth and progress within a company. Healthy turnover is when employees leave your company to pursue better career opportunities or to explore new challenges.
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France also has some zero-rated goods, the sale of which must still be reported on your VAT return, even though no VAT is charged. The first reduced VAT rate (10%) applies to goods and services like some restaurants, construction and household work, farming and forestry and passenger transport.
VAT taxable turnover refers to the total value of sales a business makes that is subject to tax after any VAT-exempt amounts are removed.
Conclusion. In short, turnover shows how busy you are. Profit shows whether you are running a healthy business. Cash flow shows whether you will survive.
A high turnover rate negatively affects the company's image. If employees leave due to poor compensation or lack of growth opportunities, it tells potential talent that it is not the best working environment. The image of a satisfied worker is a good way to attract and retain talent.
Sometimes a client pays an invoice only partially or not at all. In that case, the entrepreneur has paid too much turnover tax, because the tax was calculated on an amount that was never fully received. The law allows these excess payments to be reclaimed.
You can choose to register for VAT if your turnover is less than £90,000 ('voluntary registration'). You must pay HM Revenue and Customs ( HMRC ) any VAT you owe from the date they register you. You do not have to register if you only sell VAT exempt or 'out of scope' goods and services.
Basically, it's all the money that comes into your business before any expenses and operating costs are deducted. It's not to be confused with profit which measures your overall earnings and is reached by subtracting your total expenses from your total sales.
The "7% rule" in real estate typically refers to a quick screening tool where an investor checks if a rental property's gross annual rent is at least 7% of its purchase price, indicating a potentially solid income investment, though it's not a substitute for detailed analysis; however, other "7 rules" exist, like those focusing on agent performance (top 7% of agents do most business) or key investment principles (due diligence, diversification, market awareness, clear strategy) for long-term success.
A 20% turnover means 20% of something has been replaced or sold within a period, commonly referring to employee turnover (20% of staff left) or portfolio turnover (20% of investment assets traded), both indicating the rate of change, with high rates often signaling issues like poor culture or active (potentially costly) trading, though low turnover in investments often suggests a buy-and-hold strategy.