Revenue
What is Revenue?
Revenue, often referred to as sales or turnover, is the total income generated by a company from its normal business operations. This figure is recorded before expenses are deducted and gives insight into the company's earning ability through its core business activities.
Short Description: The total income generated from the sale of goods or services before any expenses are deducted.
- Sales Revenue: Income from selling goods or services.
- Service Revenue: Payment for providing services to clients or customers.
- Operating Revenue: Generated from primary business activities.
- Non-operating Revenue: Includes incidental revenue from secondary activities, like interest or investment returns.
This metric is crucial for assessing a company's business performance and is often used in calculating other financial indicators such as profit margins and operational efficiency.