revenue

Revenue

1. The dollar amount of sales during a specific period, including discounts and returned merchandise. It is the "top line" figure from which costs are subtracted to determine net income.

2. When evaluating stocks, revenue growth serves as an indication of a company's health.

Notes:

Sometimes acquisitions and divestitures will skew revenue growth figures.

Also known as REVs.

See also: Cost of Goods Sold, Income Statement, Net Income, Revenue Per Employee, Revenue Per User, Top Line

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See Unearned income.

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revenue

The inflow of assets that results from sales of goods and services and earnings from dividends, interest, and rent. Revenue is often received in the form of cash but also may be in the form of receivables to be turned into cash at a later date.