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.

To learn more about this concept and become a master at Financial Statement modeling, you should check out our FSM Modeling Course. Learn more here. 

Module 1: Getting Started

Module 2: Fundamental Concepts

Module 3: The Income Statement

Module 4: Working Capital

Module 5: PP&E and Intangibles

Module 6: The Cash Flow Statement

Module 7: Debt & Interest Schedule

Module 8: Finishing Your Model

Module 9: Bonus

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