Income Statement Turnover Definition

Sales turnover is the amount of money that is earned by a company after selling its products services.

Income statement turnover definition. Assume that a mutual fund has 100 million in assets under management and the portfolio manager sells 20 million in securities during the year. There are some variations on the terms just described. Turnover is the total sales made by a business in a certain period. So income includes turnover in its calculation.

However in the absence of any other definition of turnover gross receipts provided in the act it leads to different perspectives and interpretations. Balance sheet income statement statement of owner s equity and statement. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of three statements used in both corporate finance including financial modeling and accounting. Here is an example income statement which shows turnover as a top line item.

Turnover is the net sales generated by a business while profit is the residual earnings of a business after all expenses have been charged against net sales. It s sometimes referred to as gross revenue or income. In 2000 and 2001 alcoa aluminum company of america had 28 355 000 000 and 31 691 000 000 in assets respectively meaning there were average assets of 30 023 000 000 28 355 billion 31 691 billion divided by 2 30 023 billion. Is the amount of money a company makes after certain reductions e g.

This is different to profit which is a measure of earnings. Sales inventory labor and. Further it can be said the determination of income chargeable includes the aspects of determination of tax rate threshold etc. Thus turnover and profit are essentially the beginning and ending points of the income statement the top line revenues and the bottom line results.

Cost of goods sold. An income statement is one of the three along with balance sheet and statement of cash flows major financial statements that reports a company s financial performance over a specific accounting. Asset turnover total revenue average assets for period. The income statement also called a profit and loss statement is a report made by company management that shows the revenue expenses and net income or loss for a period.

It s an important measure of your business s performance. Gross income and net income. The income statement is one of a company s core financial statements that shows their profit and loss over a period of time. Profit of a company the earnings of the company after all the costs has been deducted.

Turnover is a term that is also used for investments.