Revenue
Revenue (also called sales) is the top-line amount a company earns from selling products or services.
Why it matters
Revenue growth is often the starting point for valuing businesses, but it must be assessed with margins and cash flow.
Key Takeaways
- Compare metrics over multiple periods to identify trends.
- Always consider industry context when evaluating numbers.
- Combine with other metrics for a complete picture.
Quick Reference
Category
Financials
Difficulty
Intermediate
Reading Time
1 min
Related Terms
Financial Statements
Core reports that show profitability, balance sheet strength...
Income Statement
A report of revenue, expenses, and profit over a period (qua...
Balance Sheet
A snapshot of assets, liabilities, and equity at a point in...
Cash Flow Statement
Tracks cash generated and used by operations, investing, and...
Net Income
Profit after all expenses, interest, and taxes.
Learn More
Where You'll See This
These appear in the Income Statement section on stock detail pages.