Question 1

What is turnover in company accounts?

Accepted Answer

Turnover (also called revenue) is the total income a company earns from its normal trading activities during an accounting period — before any costs are deducted. It is reported in the Profit & Loss statement of a company's annual accounts filed at Companies House. Rising turnover can indicate business growth, while declining turnover may signal trading difficulties.

Question 2

How do I read UK company accounts?

Accepted Answer

UK company accounts consist of a balance sheet (snapshot of assets and liabilities at year end), a profit & loss account (income and expenses over the year), and notes. Key metrics to look at are: turnover (revenue), profit after tax (bottom-line profitability), net worth (total equity — what the company is worth on paper), cash (liquid reserves), and employees. Micro and small companies may file abbreviated accounts with fewer details.

Question 3

What does net worth mean for a company?

Accepted Answer

A company's net worth (also called shareholders' equity or total equity) is the value of all assets minus all liabilities. It represents what would be left for shareholders if the company sold everything and paid off all debts. A negative net worth — sometimes called "balance sheet insolvency" — means the company owes more than it owns, which is a warning sign.

Question 4

How do I analyse financial trends in a company?

Accepted Answer

To analyse financial trends, look at multiple years of data side by side. Key things to watch: Is turnover growing or shrinking year on year? Is the company profitable? Is net worth increasing (retained profits) or falling? Is cash adequate to cover current liabilities? Consistent growth across all metrics over 3+ years is a positive sign. Sudden drops in any metric — especially profit and cash — may indicate problems.

Question 5

Why might a company's accounts data be missing from this tool?

Accepted Answer

Accounts data comes from iXBRL (interactive XBRL) filings submitted to Companies House. Micro entities, partnerships, and some overseas companies file in different formats that may not contain machine-readable financial data. Additionally, very small companies filing dormant accounts or abbreviated micro-entity accounts may not include a full set of financial figures. We process bulk account files as Companies House publishes them, so very recent filings may not yet appear.

Metric	What it means
Turnover	Total revenue from trading activities before any costs are deducted
Profit After Tax	Bottom-line profitability — what remains after all costs and tax
Net Worth	Total equity (assets minus liabilities) — what shareholders would receive in a wind-down
Employees	Average headcount during the accounting period
Cash	Cash and cash equivalents held on the balance sheet at year end

Financial Trajectory Tracker

How this tool works

What you'll see

What are iXBRL accounts?

Why might data be missing?

Who is this for?

Metrics explained