In the UK, turnover primarily means a business's total sales revenue over a specific period (like a year), essentially "gross income" before expenses, similar to the US term "revenue," but it can also refer to the rate at which employees leave a company (staff turnover) or inventory is sold (stock turnover). It's the "top-line" figure from trading activities, used for tax and performance, but distinct from profit, which comes after costs.
Turnover is the money received from sales. When it goes up, it means you're bringing in more revenue. When it goes down, you're bringing in less. Turnover is not your profit, however. You need to pay your production costs and general business expenses out of your turnover before arriving at a profit.
Gross turnover refers to the total revenue from sales before any deductions (such as tax). Whereas net turnover is the total revenue from sales after deductions (such as VAT or discounts).
Turnover, also known as gross revenue, is the total income a business earns from its core activities, such as selling products or services, during a specific period. It reflects the total amount of money coming in before costs or expenses are subtracted.
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.
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.
While attrition is usually voluntary or natural, like retirement or resignation, turnover refers to both voluntary and involuntary departures. While turnover includes employees who leave of their own volition, it also refers to employees who are involuntarily terminated or laid off.
To summarize: While turnover represents the total revenue generated, profit is what is left after deducting all costs and expenses.
According to a report by Lattice, compensation is the main driver of employee turnover, with 55% of employees quitting to take jobs with higher compensation. In fact, studies abound showing a direct link between competitive compensation offerings and higher rates of retention.
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.
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.
To work out your turnover, you simply need to add up all income from sales within a set amount of time, subtracting any trade discounts, product returns and VAT (if applicable). You can then subtract the cost of those sales to produce your gross profit, and all other expenses for your net profit.
Your annual gross pay is what's often referred to as your annual salary. Net pay is what's left after deductions like Income tax and National Insurance have been taken off. It's what's often referred to as your take home pay.
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. You may also hear it referred to as gross income or revenue.
A turnover in gridiron football occurs when the team with the ball loses possession and the opposing team gains possession. Most turnovers involve the offense turning the ball over to the opposing defense.
Some level of turnover is generally good for an organisation, because it can bring fresh ideas, talent and different perspectives: Removal of possible negative influence's within the business. Engaged employees. Opportunities for innovation and growth.
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.
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.
Turnover refers to the total amount of income a business generates from its core activities over a given period, before deducting any costs or expenses (e.g., stock, wages, utilities, taxes).
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.
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.
The Retail and Wholesale industry in the US has the highest turnover rate at 26.7%. Meanwhile, the Insurance/Reinsurance industry enjoys the lowest turnover rate at just 8.2%.
What are the main causes of high employee turnover? Common causes include lack of career growth, poor management, unclear compensation, damaged work-life balance, lack of recognition, low engagement, and ineffective onboarding.