Explore our Helpful Glossary of Accounting Terms.

Glossary

A Comprehensive database of Business Accounting Terms. We keep you up to date with all the correct definitions

What is Revenue?

Revenue refers to the income earned by a company from its business operations, which typically includes the sales of goods and services to its customers. Revenue is one of the most important measures of a company's financial performance, as it reflects the amount of money that a company has earned from its core business activities.

Revenue can be reported in different ways depending on the accounting method used. For example, revenue can be recognized when a sale is made, when a service is performed, or when a product is delivered to a customer. The timing of revenue recognition can have a significant impact on a company's financial statements, as it can affect the amount of revenue reported in a given period.

There are several key metrics that are often used to analyze a company's revenue performance. These include revenue growth, which measures the percentage change in revenue over a specific period of time, and revenue per unit, which measures the average amount of revenue earned per unit sold. Revenue can also be analyzed by geographic region, customer segment, or product line to gain insights into a company's sales performance.

Revenue is a key measure of a company's financial performance and is closely watched by investors, analysts, and other stakeholders to assess the company's growth prospects and profitability.