Annual Turnover

Calculation of turnover in construction comapanies? What is the use of turnover? If turnover was not announced annualy, what are the problems arised?

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vasudeo007

  • Oct 6th, 2008
 

Turnover means total sales from strict accounting sense.


Few liberals would also say that turnover means total purchase + total sales.


It really depends on your viewpoint. But for a construction company the product sold is the building erected or structure repaired.


For them receipts are sale proceeds or repairy charges recovered. So they should announce that amount as their turnover.


If a company does not announce its turnover then it does not affect the company in any way. But in these days of intense competition, each company blows its own trumpet. So it would not look attractive company to invest in or to work for.


That is the only benefit of announcing turnover. Companies can attract better investors and better staff members as well as can keep their share prices up by giving good picture of state of their business.

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In general context turnover means volume of sales  in case of Construction compay turnover means Projects complted in a particular period . with the hepl of turnover one can assess the efficiency and profitabllity of the company

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