Kierrosluku

Kierrosluku, often translated as "turnover" or "sales revenue," refers to the total income generated by a company from its primary business activities over a specific period, typically a financial year. It represents the gross amount of money a business receives from selling its goods or services before any costs or expenses are deducted. Kierrosluku is a key indicator of a company's size and market presence, as a higher kierrosluku generally suggests greater sales volume and customer demand.

While kierrosluku indicates the top-line performance, it does not reflect a company's profitability. To determine profit, one must subtract the costs of goods sold, operating expenses, and taxes from the kierrosluku. Therefore, a company can have a high kierrosluku but still incur losses if its expenses are too high. Financial analysts and investors use kierrosluku in conjunction with other financial metrics to assess a company's overall financial health and performance. Trends in kierrosluku over time can reveal whether a company's sales are growing, stagnating, or declining, providing insights into its competitive position and market strategy. In some contexts, kierrosluku might also be referred to as liikevaihto in Finnish accounting.