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Post Info TOPIC: Calculating loss as percentage of turnover
Sammy76


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Calculating loss as percentage of turnover
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Just want to double check something.

I have to work out the profit/loss as a percentage of the turnover for a couple of years accounts. Obviously I know that if turnover was 100,000 and profit was 1000 then that would be a 1% profit of the turnover

 

However one year a loss was made - do I still work it out the same. For Example turnover was 100,000 and loss was 2000 so would be a 2% loss of turnover?? 



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Shamus


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Hi sammy,

yes, it would be a negative 2%

Its really one of those nonsense ratio's that if its gone negative it doesn't really matter how negative, the business has not made anything and it becomes the actual amounts, not the ratio's that matter.

In such instance I would be more concerned with the movements of all fields to see where the issue lies ((Current period value - Prior period value) / prior period value)*100

kindest regards,

Shaun.


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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Sammy76


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Thanks Shaun. Just wanted to double check I had it right.

My client only needs it for a form to tender on some works.

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