Loading the context…
Loading the context…
Income earned from selling goods or providing services over a reporting period, before deducting the associated costs and expenses.
Save conceptRevenue measures the income earned from a business’s sales or services during a period. It is a measure of activity before the expenses associated with generating it have been deducted. A retailer’s revenue therefore differs from its profit. The reporting period matters: a quarterly total cannot be compared directly with a full-year total as though their durations matched.
An income statement records revenue under the applicable accounting rules and then reports the costs and expenses used to arrive at profit. Sales discounts, returns and other adjustments can affect the reported amount. A company may also distinguish revenue from operations from . Readers need the label, reporting scope and comparison period to understand the quantity.
Imagine a hypothetical shop reports J$1 million of sales revenue for a month. If the goods sold cost J$700,000 and the remaining recognised expenses are J$200,000, is J$100,000. Revenue is still J$1 million. These simplified values assume no or tax adjustments; they illustrate the difference between sales and what remains after costs.
Revenue is not necessarily cash already received. A sale can be recognised before a customer pays, depending on the applicable accounting rules. Revenue growth also does not automatically mean more physical goods were sold, because prices and product mix can change. Comparing revenue across companies requires consistent , period and accounting scope, as well as attention to their business models.
DMart sales rise faster than profit as quarterly margins narrow
U.S. August trade gap widens as imports outpace exports
FosRich seeks time from bondholders as restructuring talks continue