Explanation
Turnover is a key top-line indicator of business activity and demand. It's commonly tracked monthly, quarterly, or annually and may include:
- Product sales
- Service income
- Recurring billing revenue
Higher turnover may suggest market strength but must be compared with costs to understand profitability.
Practical Example of Turnover
A law firm generating £100,000 from client invoices over a quarter has a turnover of £100,000 for that period.
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