Revenue is the amount of money earned by a company from the sale of goods or services.
Basically, it’s the money a company makes from its main business activities. Revenue is an essential part of a company’s financial health, and it is one of the measures of the company’s success. It can come from various sources, such as the sale of products, services, subscriptions, or advertising.
✍️ Revenue = Price x Quantity
e.g. If a company sells 100 units of a product at $10 each, the revenue for that product is $1,000.
Revenue is important because it helps a company understand how much money they're making and how much they can invest back into the business.
By tracking revenue over time, a company can also see how their sales are growing or declining, which can help them make informed decisions about their operations.
❌ Revenue does not equal profits!
In order to see profits, first you need to deduct expenses from the revenue.
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