Revenue Vs Profit Vs Turnover

Revenue for the same period.

Revenue vs profit vs turnover. On the other hand the word revenue is specific in nature which refers to the proceeds received by the company in a particular period. Revenue is sales income earned over the accounting period. Revenue is used to calculate gross profit margin operating profit margin and net. Profit is the income earned by the company after considering deduction of total expenses from total revenue of the entity.

On the other hand turnover refers to the number of times a company burns through assets like inventory cash and workers. At first glance the premise of turnover vs revenue seems simple. Turnover vs profit. Difference between turnover and profit.

Turnover are as follows revenue represents the amount of money a company makes by selling its goods or services to the customers. The differences between turnover and profit have been detailed below. It is not the profit of the company rather it is the receipts of the. Turnover and profit are related to one another since profits are calculated by reducing expenses from the total revenue of which a major portion is made of the company s sales turnover.

In many situations turnover and revenue describe such similar ideas that they can be used interchangeably without problems. For non profit organizations annual revenue may be referred to as gross receipts. This will create the net profit margin or the gross profit margin etc. The critical differences between revenue vs.

This revenue includes donations from individuals and corporations support from government agencies income from activities related to the organization s mission and income from fundraising. In general it implies the business or trading done by a company in terms of money in a given period. Turnover is the total revenue earned from sale of products and or services by an entity. Difference between turnover and profit.

The words are commonly used as synonyms to describe the total sales or income of a business over a given period. Each flavour of profit e g. Net or gross is easily converted into its margin ratio format when you divide its monetary value by the turnover i e. Turnover is the speed at which payments from receivables are obtained and inventory sold and replaced.