Financial StatementsBeginner

Revenue

Top line, Turnover

Money a company earns from selling its goods or services, before any costs.

Detailed explanation

Revenue from operations is the first line of the income statement. Other income, such as interest on deposits, is shown separately so you can judge the core business.

Why it matters

Growth in revenue is the starting point of every valuation and forecast.

Key points

  • Also called sales or turnover.
  • Separate core revenue from other income.
  • Revenue growth without profit growth needs a closer look.

Related terms

Income StatementGross Margin

More in Financial Statements

Income StatementCost of Goods SoldGross MarginEBITDAEBITOperating Margin

Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.