Turnover generally refers to the total revenue a business generates from core activities—like sales of goods, services, rentals, and licenses—over a specific period, before expenses are deducted. It measures top-line performance, such as net sales (minus returns/discounts). It is distinct from profit, which is net income after costs.
There are two events officially classified as turnovers in the NFL and other American football leagues: interceptions and fumbles. Although there are only two types of “official” turnovers in the stat sheet, there are other ways to turn the ball over to the other team without punting or kicking a field goal.
Put simply, turnover is the total amount of money your business receives from the sale of goods and services – minus discounts and VAT. Turnover is calculated over a specific period of time, usually a quarter or financial year.
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.
Including non-turnover income: Turnover should include only revenue from your core business activities, such as selling products or services. Don't count interest or one-off funds such as asset sales.
It also excludes non-trading income, such as interest on savings and investments, or the profit on the sale of assets, as these are reported separately.
“A turnover is charged whenever the offensive team loses possession of the ball without attempting a field goal or a free throw (except in the case where the end of the period causes a team to lose possession of the ball).
Average turnover of micro and small businesses
Micro businesses with 1-9 employees reported an average turnover of £446,872 per year, while small companies with 10 or more employees reported an average turnover of £2,802,670 in 2022.
Gross profit is your turnover minus your cost of sales. Cost of sales refers to how much it costs you, directly, to make the sale. For most businesses this will be the cost of your stock or raw materials required to make products.
Turnover is the gross income a business earns from its core operations over a set period, excluding VAT and discounts. It reflects overall sales performance but does not account for costs and expenses.
Businesses must register for VAT if their taxable turnover exceeds £90,000 in a rolling 12-month period or is expected to exceed this threshold in the next 30 days. Zero-rated goods and services are included in taxable turnover calculations, even though VAT is charged at 0%.
Turnover is not profit - sales turnover is the top-line income, while profit is the bottom-line net amount left after all expenses, salaries and taxes have been paid. UK compliance: Your annual sales turnover must be reported to Companies House and HMRC, and it determines your VAT registration status.
In reality, no such lower limit exists. Whether your business earns thousands or nothing at all, it can remain a valid, registered company in the UK. But there's an important catch. While turnover isn't required, compliance is.
In business, "turnover" primarily means the total revenue from sales over a period (also called gross revenue or sales), but it can also refer to the rate at which inventory is sold and replaced (inventory turnover) or the rate at which employees leave a company (employee turnover). It's crucial to distinguish it from profit, as turnover is the money before expenses, while profit is what's left after deducting costs.
Yes, an offensive player must vacate the lane after 3 seconds. Otherwise, it is a violation and a turnover.
There are two types of employee turnover, voluntary and involuntary, though both impact overall business health equally. Leadership can apply several turnover calculations to monitor workforce strength, including voluntary and new hire turnover rates.
No, turnover does not take expenses into account. This is because it is the total income of a business before expenses are subtracted. It is important that turnover is only how much income the business has generated without any expenses deducted from that number.
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 is a good net profit margin? Again this depends on what sort of business you are in but 10% would be fairly normal. If the business owner is taking a low salary then you should be aiming for much higher than this figure.
Common Causes of High Turnover
Lack of appreciation/recognition - A failure to recognize and acknowledge good work and high performance or give feedback consistently. Toxic work environment - A disrespectful, cutthroat, unethical, abusive, and/or non-inclusive workplace contributes to a toxic culture.
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.
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).