What Is Revenue?

Revenue is one of the most basic and fundamental financial figures for a company. It is the total amount of income from the sale of its products and/or services. Revenue is also known as gross income.

The calculation for revenue is:

Sum (Price of Good x Quantity Sold)

I.e. the sum of the income generated from selling each unit.

Most of the figures in financial statement projections are based on a percentage of revenue. Although revenue in itself is very important for working out all the other figures of a company's financials, revenue in itself does not actually say anything about profitability.

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Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.

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