Revenue, income & turnover ?

[watersg]

Please help me explain the different between : revenue, income & turnover, thank you very much.

[Khatores]

Revenue is how much money comes in - this usually applies to an organization, government, or company. In the US, the federal tax agency is known as the Internal Revenue Service. They are very unpopular.

Income is the same as revenue, but this word is more used for individuals.

Turnover is how quickly people are replaced. A company that fires and hires people quickly, or people quit and are replaced quickly, has high turnover. For example, a grocery store or call center has high turnover because the jobs are short-term and people hate it. A professional job (like doctor, dentist, or a government position) will probably have low turnover, because people go to a lot of trouble to get in them, and they pay well.

[Ern]

Hi Kartores
I think Watersg is asking about "turnover" in a Finacial context.
Turnover in a finacial context is the amount of money a Company may make before any taxes/expences etc. are taken into acount.
That means that a company could sell one hundred items at at one dollar in a period of one year. So that means that they have a annual "Turnover" of one hundred dollars
Example.... a company may "turnover " one million dollars in one year. But by the time cost/expences are taken out of the one million, that company may only retain about $250,000.00.
So then you have a "NET Profit " of $250,000.00 as opposed to a "turnover" of one million.
Ern

[watersg]

Hi Khatores & Ern,
Thank you of your help very much. Yes I want to ask about revenue, income & turnover in Financial context. I understand that :
- Income is money that a people earns, It use for invidual, for example salary.
- Revenue & turnover : I understand as Ern's idea, but I don't know to use between Revenue & turnover.

[Ern]

OK
Difference between revenue and turnover
Turnover I answered before, but I will add one more thing. Turnover relates to a company profit/sales
Revenue is the total source of ALL income. So apart from your selling something that will be part of your turnover, you may....say....Hire out some equipment or some employees. You could even sell off some old eqipment that you do not need any more.
The total of all of this is added into your turnover as extra Revenue
Revenue is money that you make, in a company form it all comes under turnover.
In a individual form in comes under the heading of Income, money that you make that may be liable for tax purposes.
I might get some other revenue apart from my salary by selling fruit from my home on the weekends. So that become exta revenue (money that comes in but must also be counted as (extra income/salary)
Revenue....is a combination of all money earnt in a certain period
Turnover ...is money made by a company over a certain period before any deductions are taken into account.

Ern

[giang]

The problem is that all these terms are translated in Vietnamese "thu nhập". Who can give distinct translation for these, plz ?

[nktvn]

We call income "thu nhập" but revenue "doanh thu (của một công ty)"

[Khatores]

Hi Kartores
I think Watersg is asking about "turnover" in a Finacial context.
Ok...I don't think we call it that here. It's also known as "gross revenue". On the other hand, I don't know much about finance.

[bschuess]

I am so late to this thread that I can't even imagine that it's relevant any more, unless another member is looking for these definitions.

Upon reflection, I think the financial turnover concept that was being looked for was probably "inventory turnover" which relates the size of average inventories to annual sales. See below for more detailed definition:

The ratio of a company's annual sales to its inventory; or equivalently, the fraction of a year that an average item remains in inventory. Low turnover is a sign of inefficiency, since inventory usually has a rate of return of zero. For instance, if a company was able to generate $10 million in sales but averaged $5 million in inventory, the inventory turnover would be 10 million / 5 million = 2. This number indicates that there would be 2 inventory turns per year, meaning that it would take 6 months to sell all the inventory.