What is the definition of a Revenue?

Revenue is one of the most basic and fundamental financial figures for a company. It is the total amount of income from the sale of its products and/or services. Revenue is also known as gross income.

The calculation for revenue is:

• Sum (Price of Good x Quantity Sold)

I.e. the sum of the income generated from selling each unit.

Most of the figures in financial statement projections are based on a percentage of revenue. Although revenue in itself is very important for working out all the other figures of a company's financials, revenue in itself does not actually say anything about profitability.