Sales turnover: types, formulas, important indicators
Posted: Thu Jan 23, 2025 6:15 am
What is it? Sales turnover is the total amount of goods or services sold. Do not confuse it with revenue, which is the amount from which expenses are subtracted.
How to calculate? Using automated warehouse accounting programs. Don't forget to analyze all calculations later to find the best ways to increase sales turnover.
The article explains:
The concept of sales turnover
Sales turnover indicators
Formation of sales turnover
Formulas for calculating sales turnover
Types of trade turnover
Factors Affecting Sales Turnover
Sales turnover control
Sales turnover forecasting
Ways to Increase Sales Turnover for Wholesale
Ways to Increase Sales Turnover in a Retail Store
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
The concept of sales turnover
Sales turnover in any given nurse database business is the total amount of goods or services it sells in a given time. This can also be called gross revenue or income, but sales turnover and profit should not be confused.
For turnover, the entire amount is needed without any deductions. Moreover, it includes not only physically sold products, but also those sold on credit, with deferred payment, i.e. accounts receivable. To find out the sales turnover, you need to multiply the price by the quantity of goods sold.
Being a significant indicator of business activity in general, sales turnover needs to be monitored at any stage of business operation. That is, it is important to track it from the very beginning, when your own business is still at the stage of planning and development, attracting investments, testing, and in the event of the business owner's decision to transfer it.
The concept of sales turnover
Sales turnover is often compared to or even called revenue, although these concepts are not identical.
Turnover from sales of goods can be defined as the entire amount of income from the sale of products in any type of entrepreneurial activity under consideration for a specific period of time, without taking into account the costs of this product or other purposes. Revenue refers to the money received that remains after deducting all expenses.
There are two main types of profit: gross and net. The first is calculated as the income from the sale of goods or services minus their cost in kind. In economics, you can also hear it defined as the sales margin.
The calculation of net profit is based on the income that remains after deducting all expenses. This is not only the cost of goods in kind, but also includes sales tax and the like. It is worth noting that when the balance sheet is drawn up, there are no direct indicators of net profit and annual turnover.
In the case of selling goods or services on credit, to determine the planned profit from this, the turnover of accounts receivable is also taken into account, that is, the time required for customers to fully pay for what they have purchased.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for
How to calculate? Using automated warehouse accounting programs. Don't forget to analyze all calculations later to find the best ways to increase sales turnover.
The article explains:
The concept of sales turnover
Sales turnover indicators
Formation of sales turnover
Formulas for calculating sales turnover
Types of trade turnover
Factors Affecting Sales Turnover
Sales turnover control
Sales turnover forecasting
Ways to Increase Sales Turnover for Wholesale
Ways to Increase Sales Turnover in a Retail Store
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
The concept of sales turnover
Sales turnover in any given nurse database business is the total amount of goods or services it sells in a given time. This can also be called gross revenue or income, but sales turnover and profit should not be confused.
For turnover, the entire amount is needed without any deductions. Moreover, it includes not only physically sold products, but also those sold on credit, with deferred payment, i.e. accounts receivable. To find out the sales turnover, you need to multiply the price by the quantity of goods sold.
Being a significant indicator of business activity in general, sales turnover needs to be monitored at any stage of business operation. That is, it is important to track it from the very beginning, when your own business is still at the stage of planning and development, attracting investments, testing, and in the event of the business owner's decision to transfer it.
The concept of sales turnover
Sales turnover is often compared to or even called revenue, although these concepts are not identical.
Turnover from sales of goods can be defined as the entire amount of income from the sale of products in any type of entrepreneurial activity under consideration for a specific period of time, without taking into account the costs of this product or other purposes. Revenue refers to the money received that remains after deducting all expenses.
There are two main types of profit: gross and net. The first is calculated as the income from the sale of goods or services minus their cost in kind. In economics, you can also hear it defined as the sales margin.
The calculation of net profit is based on the income that remains after deducting all expenses. This is not only the cost of goods in kind, but also includes sales tax and the like. It is worth noting that when the balance sheet is drawn up, there are no direct indicators of net profit and annual turnover.
In the case of selling goods or services on credit, to determine the planned profit from this, the turnover of accounts receivable is also taken into account, that is, the time required for customers to fully pay for what they have purchased.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for