What is the turnover?

The volume of business is the total set of income that a company receives as a result of its activity. This income comes directly from the economic transactions that have been carried out by the company during a certain time. In addition, the concept of business volume directly includes the total value of those goods and services that the company has come and provided on a day-to-day basis.

How to measure the volume of business of a company

To find out what the business volume of a company is, we will have to find out at all times what is the solvency level of the company, so it is of great help to know if the company will be prepared to face possible creditors.

Thus, to calculate the volume of business of a company we will have to multiply all the units that have been sold of the product by the unit cost of each one of them.

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