Turnover – The value of all sales made by selling goods and services over a period (revenue) plus any rent in, any money from interest, charging other companies for expenses etc
Note: Turnover is all money in, everything. Revenue is just goods and services.
To remember what turnover means use the following mnemonic:
The farmer turned over (turnover) every bit of the company's money in his field.
Normally if the company hasn’t got any property to rent out or a bank account which pays interest, then the total amount of money brought in is the total amount of sales you make over a set period. The normal set period that companies are interested in is one year.
You can review any limited company’s profitability in the UK by viewing the Company’s House website (Securities and Exchange Commission, (SEC) in USA). All data is set out in the same way. The first main page of figures in these accounts is called the statement of comprehensive income or profitability. The first figure displayed on this statement is always the turnover, as seen below:
Note: brackets mean a negative figure.