The turnover indicates well the total of the Vente S of S and service S invoicees by a Entreprise on a countable Exercice. It is expressed in monetary units and is counted over one year. It is calculated net of tax, and in particular except VAT, and made deduction of the reductions, handing-over and rebates granted. Concretely, the turnover of a company on a given exercise is obtained by making the sum of the whole of the invoices and asset net of tax emitted during this exercise.

It generally constitutes the main part of the produced of a company. However, in certain cases, it can exist a substantial difference between the turnover in a company and the produced total of its exploitation (which included the turnover). Example: if a company perceives many subsidies of exploitation (to any title that it is: equipment of operation, project of Research and development, etc), the amount of these subsidies is not included in the turnover of the company (because there no was invoicing) but it is included in the total of the products of exploitation, from which the Turnover is calculated.

Him only, the turnover does not make it possible to judge performance of a company. Its level depends indeed on the nature of its activity. However, it is a tool of comparison practices between companies of the same branch of industry. The variation of the turnover of a company is on the other hand an interesting analytical indicator. For this purpose, the turnover can be expressed in value or volume, i.e. at constant prices (by disregarding rise of the Prix). In this case, one will say that the turnover is déflaté.

The consolidated turnover indicates the turnover of the whole of the companies of a group (and thus taking part of only one and even undertaken). It is consisted of the sum of the turnovers of the Filiale S of the group after elimination of the internal sales between subsidiary companies.

Some figures

See also: World classification of the more large companies in 2005

See too

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• General ledger
• Cost accounting

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