The difference between Turnover and Profit

  • The difference between Turnover and Profit 1

Turnover is accounting terminology for SALES !  Your business's turnover is the SALES it makes over a given period of time.

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.

Thus, turnover and profit are essentially the beginning and ending points of the income statement - the top-line revenues and the bottom-line results.

The "profit" term can refer to gross profit, rather than net profit. The calculation of gross profit does not include any selling, general, and administrative expenses, and so is less revealing than net profit.There is little relation between turnover and gross profit.

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Turnover               Sales              Profit           Revenue            Income