käive

Käive is an Estonian term used in business and accounting to refer to a company’s turnover or revenue from the sale of goods and services over a defined period, such as a fiscal year or quarter. In financial reporting it is typically presented as net sales, i.e., the value of sales excluding value-added tax (VAT). In practice, the exact treatment can vary between accounting standards, but käive is broadly understood as the amount generated by core business activities rather than a measure of profitability.

Calculation and scope

Käive is the total invoiced value of all goods and services sold during the period. It is commonly stated before VAT and may exclude certain adjustments such as returns, allowances, or discounts depending on the reporting framework. In many contexts, the figure is referred to as müügikäive or sales turnover and serves as a basic indicator of sales activity and business size.

Usage and interpretation

Käive is a key metric for assessing a company’s scale and growth. It is often used to analyze trends, compare performance across periods, and assess capacity utilization. However, käive alone does not reflect profitability, efficiency, or financial health; a company can have high käive but low or negative profit if costs are disproportionate or margins are thin. It is frequently complemented by other indicators such as gross profit, operating profit, and net income.

Relation to related terms

Käive is related to concepts like müügikäive (sales turnover) and kasum (profit). Distinctions between gross revenue, net revenue, and VAT treatment can vary by jurisdiction and accounting standards, so practitioners refer to the applicable reporting framework for precise definitions.