Translation: Revenue / Sales = Revenue or Sales.

Simplified Definition: It is the "first line" (Top Line), meaning the total amount the company received from selling its products or services before deducting any penny of costs.

What Does It Mean for You?

  • Popularity Measure: Growing revenue means people love what the company is selling and its market share is increasing.

Common Question: Does increased sales always mean increased profits?

  • Answer: No, the company may sell more with huge discounts that make the cost of sale greater than its price, increasing sales and increasing losses simultaneously!