How to Maintain Turnover During the Pandemic

Lutfi

How to Maintain Turnover During the Pandemic
How to Maintain Turnover During the Pandemic

Rancakmedia.com – In this article, we will talk about how to maintain turnover during the pandemic, the meaning of turnover and the difference between turnover and profit? Turnover during the pandemic What is turnover, you ask? The definition of turnover refers to the amount of money from the sale of certain goods/services during the sales period.

Yes, both are often discussed in business and business matters. Because both are inseparable components of income company. Unfortunately, people often exchange words and profits in reality. Do you want to know more about its true meaning? Check out the discussion below.

What is Sales?

Turnover is the amount of money from sales during the sales period of certain goods/services. Business people usually use sales period calculations once a month. Meanwhile, turnover is better known as income according to Investopedia. It means,

Turnover is revenue generated by regular business activities and includes discounts and deductions on returned goods. Sales is the total value of business sales in a certain period.

In short, turnover represents a company's total sales revenue during a period without deductions for expenses. Or simply called “gross income”.

How to increase sales

How to Maintain Turnover and Increase It During the Pandemic

There are turnover techniques or strategies to boost sales.

However, the discussion is too long because there are too many. I created a separate article on how to increase turnover for this purpose.

What is Turnover Profit During the Pandemic?

Profit is the difference between the company's total sales (turnover) and the company's production costs. The definition of profit above refers to the definition of profit according to Wikipedia, which means profit and gain,

The short formula is profit = turnover – costs. When the result exceeds 0, the company makes a profit. On the other hand, if it is less than that, it means a loss for the company. In the end, profit can only be called net profit.

What is the Difference between Sales and Turnover Income During the Pandemic?

The difference between costs and profits is in the turnover calculation. Gross income is often referred to as gross turnover. Profit is net income. Equality of turnover minus costs or often called net.

Let's look at the calculation formula to make it clearer.

Let's look at the calculation formula to make it clearer.

How to Calculate Sales?

The formula for calculating turnover is quite easy, so turnover (TR) = selling price (P) x number of sales (Q). Or TR= P x Q. Or TR.

For example, when a company sells 1.000 hats to 20.000, its sales turnover will be 20.000 x 1.000 = 20.000.000 (20 million)

How to calculate sales turnover. Meanwhile, profit has the formula profit (MP) = turnover (P x Q) – costs (C).

Or in MP = (P x Q) – C. If the company has 20 million sales and 14 million production costs, then the profit is 20 million – 14 million = 6 million.

Impact Amount

Many believe that sales volume is directly related to profit volume.

This is not always the case, in fact. Sales should ideally be higher than profits. However, this is before costs are also calculated.

For example, a hat company would incur a $1 million loss in costs if it only spent $21 million on hats. This means the company experienced a loss.

Company Turnover and Success

The amount of profit is directly related to the success of the company. The bigger the profit, the better the company.

Different from the case of turnover. The number of turnover cannot be used as a reference for assessing a company's success.

This is because turnover still includes costs. If costs are greater than turnover, the company experiences a loss.

Therefore, business people often use the word turnover to learn how much they manage. It's not how much money you get.

Balance Sheet Turnover Position

Profit is calculated by subtracting total production costs as net money generated by the company.

The profit position on the balance sheet is at the bottom of the list. Once all costs are listed: production, wages, administration, marketing and taxes.

Meanwhile, turnover cannot be classified as pure money, because it also contains receivables.

For example, the company's monthly turnover is 30 million. Goods sold by the company may not be paid for immediately in cash, but in accounts receivable.

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Lutfi

Hi, let me introduce myself, Lutfi Hulasoh, I am a writer and techno blogger. I started creating a personal blog writing informative articles about the latest trends and developments in technology. My writing covers a wide range of topics, from mobile applications to artificial intelligence, and I can also provide easy-to-understand explanations to help readers understand complex concepts.