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Average annual turnover

Vibhor jain (Student CA Final ) (43 Points)

23 September 2015

Hi I wanted to know whats the meaning of average annual turnover?? And how is it calcualated. Please explain with the help of an example if u may. Thankyou

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6 Replies

CA Suri Kota (Assistant Manager @ EY) (955 Points)
Replied 23 September 2015

Hi,

Are you asking w.r.t any context or generic ???

Can be helpful to reply if you can post the context !!!!!

Vibhor jain (Student CA Final ) (43 Points)
Replied 23 September 2015

Hello boss Thanku for replying Just asking sir...i think average annual turnover shall be the total turnover during the year divided by 12. Am i right? Thanx

Mukund (Nil) (36 Points)
Replied 25 September 2015

Average Annual turnover is averaging the turnover over the period of a year,quarter(3 months) or half yearly.If in Y1 turnover is 100,Y2 is 200 your average annual turnover is 150.

Vibhor jain (Student CA Final ) (43 Points)
Replied 25 September 2015

Month.Turnover (cr) 1. 5 2. 9 3. 12 4. 6 5. 8 6. 10 7. 5 8. 9 9. 14 10. 9 11. 14 12. 18. What would be the average annual turnover for the year??

Mukund (Nil) (36 Points)
Replied 25 September 2015

In the example you have given above if you add up all the numbers you get 187....so number of year is 1 (one) so your annual turnover is 187 ( or sum of monthly turnover).Instead of month if you have used year say 12 years you will be getting average annual turnover as 15.5 appx.