Umsatzes

Umsatz is a German term that denotes turnover or revenue, i.e., the total value of goods and services a company sells within a defined period, typically a quarter or a year. It is a primary performance measure in financial statements and annual reports, reflecting business activity and market size rather than profitability. In standard German grammar, the genitive singular of Umsatz is des Umsatzes; the form Umsatzes can appear in older texts or in certain compounds, but modern writing usually uses des Umsatzes to indicate possession (e.g., Wachstums des Umsatzes).

Umsatz differs from profit. Revenue indicates the inflow from sales before deducting costs, whereas profit (Gewinn) reflects the remaining amount after expenses, taxes, and other deductions. In accounting, Umsatz is often considered excluding value-added tax (VAT); VAT is typically recorded separately as a liability and is not part of the revenue figure presented in many financial statements. In some contexts, companies distinguish between Bruttoumsatz (gross revenue) and Nettoumsatz or Nettoumsatzerlöse (net revenue), the latter excluding VAT and returns.

Common uses and related terms include Umsatzwachstum (turnover growth), which measures how revenue changes over time, and Umsatzhöhe (level of revenue), which indicates the scale of a business. In IFRS and many national accounting standards, the term Umsatzerlöse is used for revenue earned from contracts with customers and is a key line item in the income statement.

Overall, Umsatz provides a broad view of a business’s size and activity, but it does not by itself indicate financial health or profitability.