What is meant by turnover

Questions by jyothi_k   answers by jyothi_k

Editorial / Best Answer

vasudeo007  

  • Member Since Jul-2008 | Aug 18th, 2008


The word "Turnover" has many meanings.

For a trader/manufacturer/service provider it means total sales (cash+credit).

While when a bank gives loan to any person or company they see the turnover.

Here the turnover generally refers to the total credits in any given period in account holder's account.

While bank's own turnover is the total loans disbursed + outstanding recovery of earlier period - bad debts (loans written off) in this period.

Considering the disclosure norms in Accounting Standards the announcement of turnover is required. I am not sure for which industries it is mandatory and for which industries it is not. But it is nevertheless announced.

Balance sheet of any company can be easily window dressed. So to understand whether whatever profits that are shown are really from turnover or not the announcement of turnover becomes necessary.

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.

In case if the investor finds out that the company is selling the goods to a huge quantity but not making much profits then he can investigate the books of accounts to find out what are the causes of low profitability.

Vasudeo.

Showing Answers 1 - 3 of 3 Answers

Hardy Shah

  • May 31st, 2006
 

The turnover refers to the sales volume for a specific period of time like quarterly, semi annually or annualy. It can be measured with sales volume figure or no.of days taken.

Dana

  • Jun 2nd, 2006
 

represents the number of times an asset is replaced during a financial period

  Was this answer useful?  Yes

Shruti

  • Jul 31st, 2006
 

Turnover is nothing but the total sales made by the firm or a company.

vasudeo007

  • Aug 18th, 2008
 

The word "Turnover" has many meanings.

For a trader/manufacturer/service provider it means total sales (cash+credit).

While when a bank gives loan to any person or company they see the turnover.

Here the turnover generally refers to the total credits in any given period in account holder's account.

While bank's own turnover is the total loans disbursed + outstanding recovery of earlier period - bad debts (loans written off) in this period.

Considering the disclosure norms in Accounting Standards the announcement of turnover is required. I am not sure for which industries it is mandatory and for which industries it is not. But it is nevertheless announced.

Balance sheet of any company can be easily window dressed. So to understand whether whatever profits that are shown are really from turnover or not the announcement of turnover becomes necessary.

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.

In case if the investor finds out that the company is selling the goods to a huge quantity but not making much profits then he can investigate the books of accounts to find out what are the causes of low profitability.

Vasudeo.

mech.sanjay

  • Mar 24th, 2011
 

an aspest-

how the management efficiency is being turned around in terms of quantity being sold on technology, cost, human & time constraints.
note-these constraints can be prioritized.

  Was this answer useful?  Yes

Give your answer:

If you think the above answer is not correct, Please select a reason and add your answer below.

 

Related Answered Questions

 

Related Open Questions