Income Vs Revenue Vs Turnover

Turnover means total sales of a company in a particular time period.

Income vs revenue vs turnover. And lastly profit from that sales is the net amount left with the company after deducting all the expenses from the revenrelated to that sales directly and indirectly. Thus the key difference between revenue and turnover is that while revenue is the sales income generated by a company turnover assesses how quickly a business collects cash from accounts receivable or how fast the company sells its inventory. The key difference between revenue vs turnover is that revenue refers to the income generated by any business entity by selling their goods or by providing their services during the normal course of its operations whereas turnover refers to the number of times the company earns revenue using the assets it has purchased or generated in the business. We get net income by deducting all the expenses from the net sales.

Net income comparative table. Turnover is a broad term which is used in different contexts in different disciplines. The words are commonly used as synonyms to describe the total sales or income of a business over a given period. In accounting revenue is the income that a business has from its normal business activities usually from the sale of goods and services to customers.

However revenue represents the money a company earns by selling its goods and services for a price to the consumers. Turnover is the ability of a company to burn through assets. Revenue is the income generated from making the sales. At first glance the premise of turnover vs revenue seems simple.

In general it implies the business or trading done by a company in terms of money in a given period. We get net sales by deducting the sale return discount from the gross sales. Aapl posted a top line revenue number of 260 billion for 2019. Overview and key difference.

The company s revenue number represented a 2 year over year decrease. Revenue net sales net income. While income can be divided into two gross income also known as gross earnings pre tax profit and net income or net earnings after tax profit. On the other hand the word revenue is specific in nature which refers to the proceeds received by the company in a particular period.

It is not the profit of the company rather it is the receipts of the. In many situations turnover and revenue describe such similar ideas that they can be used interchangeably without problems. Position in an income statement. Tax revenue is income that a government receives from taxpayers.