Glossary
Definition
Revenue
Total income generated by a company before any expenses are deducted.
Revenue (also called turnover or sales) is the total money a company receives from its business activities before costs are subtracted. It is the 'top line' of an income statement. Revenue differs from profit: a company may have high revenue but still lose money if its costs exceed that revenue.
Frequently Asked Questions
What is the difference between revenue and profit?
Revenue is total income. Profit is what remains after all costs, taxes, and expenses are deducted. Gross profit deducts cost of goods sold; operating profit deducts operating expenses; net profit deducts everything including interest and taxes.