Revenue Is Related To A Company's Income.
A Company Earns Money By Selling Its Products And Services, Which We Refer To As Its Revenue. This Money Earned By Companies Is Measured On A Quarterly OR Annual Basis.
If Put In Simple Words, We Can Say That Revenue Is The Money A Company Earns By Selling Its Products And Services.
The Formula For Calculating A Company's Revenue Is: Revenue = (Price Per Product OR Service) × (Total Number Of Products Or Services Sold) + Additional Income.
Revenue Is A Financial Metric That Tells Us About The Money A Company Earns By Selling Its Products And Services.
From Revenue, We Also Get To Know About A Company's Financial Situation.
Revenue Of A Company Is Also Called The Top Line Of That Company Because Revenue Is Written At The Top Of The Income Statement Of Every Company.
Generally, When A Company Has High Revenue, Its Market Capitalization Is Also High. This Means That The More Revenue A Company Has, The More Its Value Increases In The Market.
And When The Revenue Of A Company Decreases, Then The Market Cap Of That Company Also Decreases. That Is, As The Revenue Of A Company Decreases, The Market Value Of That Company Also Decreases.
Revenue Is Also Used By A Company To Pay Its Expenses.
Friends, I Want To Tell You That There Are Two Types Of Revenue. 1. Operating Revenue 2. Non - Operating Revenue
Apart From Operating Revenue And Non-Operating Revenue, There Are Also Other Types Of Revenue, Such As: 1. Sales Revenue 2. Investment Revenue 3. Service Revenue 4. Royalty Revenue
By Looking At The Revenue Of A Company, We Can Also Estimate The Financial Health, Growth And Future Prospects Of That Company Whether It Will Be Successful In The Future OR Not.
Friends, By Looking At The Revenue Of A Company, An Investor Or Shareholder Can Also Measure The Financial Stability Of That Company's Business Well.