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 Caterpillar Is Using AI To Reinvent Heavy Industry Without Replacing Workers
Caterpillar has been putting autonomous machines to work in some of the world’s toughest environments for more than 30 years. And[...]
The 8 AI Trends That Will Change Everything In 2027
In 2027, the AI hype train rolls on. But is it about to be derailed by bubbles bursting? 2027 could be[...]
The Top 7 Technology Trends For 2026
Technology is moving into a new phase in 2027, and once again AI sits at the center of it. But this[...]
AI Is Growing Up: What World Summit AI 2026 Revealed About The Future Of Business
The AI industry is entering a new phase, where autonomous agents, business transformation, governance and human wisdom are taking center stage.[...]
How AI, Drones And Autonomous Vehicles Are Transforming The British Army
The British Army is entering a new era in which soldiers will increasingly fight alongside drones, robots and AI-powered systems. I[...]
Humanoid Robots Are Coming, Here’s What Everyone Needs To Know
More than one billion humanoid robots could be living and working alongside us by 2050. That is Morgan Stanley's forecast, and[...]
Sign up to Stay in Touch!
Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity.
He is a best-selling author of over 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations.
He has a combined following of 4 million people across his social media channels and newsletters and was ranked by LinkedIn as one of the top 5 business influencers in the world.
Bernard’s latest book is ‘Generative AI in Practice’.
Social Media