Revenue
Also called: sales, turnover, top line
The money a business earns from selling its goods or services in a period, before any costs are deducted.
Revenue is the first line of an income statement, which is why it is sometimes called the "top line". It is recorded when goods or services are delivered, even if the customer has not yet paid.
Revenue is not profit. A business can grow its revenue quickly and still make losses if its costs grow faster.
Example
A café sells 40,000 cups of coffee in a year at ₹150 each. Its revenue from coffee is ₹60,00,000, whatever its costs were.
Learn more in these lessons
- Revenue, expenses and profitWhat is the difference between revenue and profit?
- Understanding a company's business modelHow do you work out how a company actually makes money?
- Products, customers and revenue driversWhat is really driving a company's revenue growth?
Related terms
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