turnover

ritika

dear friends , can ny1 explain the concept of turnover.....
-->how it is calculated?
-->what is its relevance?
-->and is it calculated for all kinds of businesses?

shabbir

Yes its calculated for all business and the main aim of it is to calculate the strength of operations mainly.

Say I sell something of Rs 100 with a 10% profit margin.

So My turn over is Rs 100 but if I can increase that to an extent of Rs 1000 my profit and other things would increase

rax.india

turn over means how early u can convert your investment into cash means sold your inventry .yes it can be calculated for all business .it is calculated to know effectivness of operation in business .

shubh

The turnover refers to the sales volume for a specific period of time like quarterly semi annually or annually. Considering the disclosure norms in Accounting Standards the announcement of turnover is required. In case if a person/investor finds out that the turnover of any company is not high but the company is saying that they have made big profits then he can probe in details as to how the company is making its money.