What does margin measure What does turnover measure Explain

What does margin measure? What does turnover measure?

Explain these for easy understanding

Solution

Margin in accounting terms refers to the different between Revenue and expenses. There are three different margins which are generally calculated such as gross profit margin, operating margin and net profit margin.

Turnover in accounting terms refers to how fast the company\'s customers pay for goods purchased. Even it refers to how fast the company sells its inventory.