Revenue
2 July 2021
Revenue (also referred to as turnover or sales) is simply the income that a company receives from its normal business activities, usually the sale of goods and or services.
In accounting terms revenue represents the “top line,” to denote how it is reported on an income statement (at the very top). The “bottom line,” denotes net profit (what is left from the revenues once all expenses are deducted).
Generally revenue might be understood as income received by an organization in the form of cash or cash equivalents. However sales revenue can be described as income received from selling goods or services over a given period of time.
Total Revenue = Price of goods or services x Quantity sold
This indicator is included in the book: Key Performance Indicators – the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and acutal usage.
Related Articles
How Data And AI Are Reshaping Contemporary HR Practices
Artificial Intelligence (AI) is an incredibly powerful business tool, but not many organizations are capable of using it to its full potential.[...]
How Data And AI Are Reshaping Contemporary HR Practices
The world of human resources (HR) stands on the precipice of an exciting era powered by data and AI.[...]
Business Leadership In The AI Era – IBM’s AI Academy
Remember when the internet was new? Or if you’re a little older, when computers were new? Imagine being able to relive those days, with the benefit of hindsight – having the chance to build your business into the first Google, Facebook or Amazon.[...]
The Top 5 Artificial Intelligence (AI) Trends For 2024
Today, we're diving deeper into the five most significant AI trends set to reshape our world in 2024.[...]
The 10 Most Important Customer Experience (CX) Trends In 2024
Good sales and marketing, quality control, pricing, customer service and after-sales all help businesses to generate sales.[...]
From Digital Gucci To Blockchain Supply Chains: Retail’s Web3 Revolution
From the early days of online shopping to the rise of influencer marketing, there’s no doubt the internet has revolutionized how we shop and make purchasing decisions.[...]
Social Media