Web Definition: Revenue
In business, revenue is the amount of money that a company actually receives from its activities, mostly from sales of products and/or services to customers. To investors, revenue is less important than profit, or income, which is the amount of money the business has earned after deducting all the businesss expenses. Revenue growth is an important indicator of the market reception of a companys products & services. Yet a company cannot focus solely on revenue, but must also manage the costs of raising the revenue, a fact that many high-revenue companies have learned only painfully. Consistent revenue growth, as well as income growth, is considered essential for a companys publicly traded stock to be attractive to investors. The term top line is often heard as a synonym for revenue ; this term comes from the fact that in a companys financial reports, revenue is generally shown at the top, then all the companys costs & expenses beneath that & then the income, or the bottom line, is at the bottom.
Read More »Dictionary Entry: That which returns, or comes back, from an investment - the annual rents, profits, interest, or issues of any species of property, real or personal - income.
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