The difference between turnover and profit

[Starmix]

You might be thinking that turnover and profit are the same in meaning and description. In our minds idea come in that these two words are the same or nearly the same in meaning. They are synonymous but actually, they are different. When we say turnover, it means the net sales from your business, while profit is the residual earnings of your business after all expenses have been charged against the net sales of your business. It is actually the term turnover that works out for your business to have a good profit. Whatever turnover the business gained, it will be calculated as your profit after everything else was deducted.

So, business turnover matters a lot because if the turnover is small, so also the profit.

 

[Niyi Briggs]

Semantically, we can call turnover total revenue. And it is actually the total amount an organization realizes from the sales of it's products. While profits is the remainder after costs has been deducted.

 

[Starmix]

That is right, the busiess turnover depends on the volume of sales of the business if there is in so doing, there will be amassing profit. It is good for the business owners to do the followup.

 

[Etini Willie]

That is right, the busiess turnover depends on the volume of sales of the business if there is in so doing, there will be amassing profit. It is good for the business owners to do the followup.

Even if the turnover is high, and the cost of production is also high, your profit margin would be rather small. There has to be a balance in cost of production for turnover to be positive for a business.

 

[Starmix]

That is why, it is not good to rely only on one business or investment because the prices this time go up nonstop. We cannot predict the prices every day up or down.

 

[Heatman]

The number of turnovers that you have in a business is what is going to determine the amount you are going to be seeing in the business as your profit.

 

[Starmix]

If you have a good turnover it also means good profit. And you can only do this if you are good to your customers. They bring money to your business. They are the real assets thus gaining your business more.

 

[Suba]

Profit is business income, as a result of sales after deducting cost of goods and operational costs, marketing costs, other costs and income exposure. This profit will be distributed to shareholders after deducting retained earnings.
While turnover is the gross business income obtained from business operations. Turnover is also one of the accounting concepts to calculate the speed of business operations. Turnover is also used as a benchmark to measure businesses/companies, including small, medium or large scale.

There is no guarantee that good turnover means good profit, if the costs and expenses are very large, it may be a loss.

 

[Desireu30b]

Turn overs are much needed in business to know if you are making profit or just being a philanthropist,
Thank you so much for telling me this, I have learnt too today Starmix

 

[olaniyi]

A turnover is an amount in a business that you investing again into the business but a profit is the total gain in the initial business which you can spend or Turn it over too

 

[nomad]

Turnover or revenue is the total amount generated through sales, and profit is your revenue minus your expenses