Business turnover is a numeric value representing total sales. It is essentially the value of sales you make in a set period. It is generally measured over a year's period, whether that's the calendar year, tax year or fiscal year. Business turnover is one of many ways to analyze the quality and efficiency of a business, and provides a nice retrospective look at the revenue for a specific time period. Turnover is another term used for what is more commonly known as gross income or total income received.
Add up the total number of items sold or services rendered. Look through your company financial records for the given time period and calculate the total number of items, or the volume of sales, for the given period.
Analyze your company's financial records and compute the average price of items you sold in the given time period.
Calculate your business turnover by multiplying the number of items sold by the average price of all sold items.
- If you are having difficulty computing turnover or keeping efficient financial records, you may want to consult with an accountant.
- Creatas/Creatas/Getty Images