Net Revenue And Net Income Difference

Net income is the bottom line on a business s income statement.

Net revenue and net income difference. What is net income. You d have a net revenue of 70 000. Every publicly traded company has to file an income statement in addition to the balance sheet and cash flow statement that shows the company s revenues and expenses for a particular time period. The difference between your gross revenue and your net revenue indicates how well your marketing and sales methods are working.

People often refer to net income as the bottom line as it is the last line item on an income statement. In this case the large discount might indicate that you initially priced the products too high. Revenue also called sales or turnover is simply the total amount of money received by a company from its business operations sale of goods or services whereas net income also called net profit is the amount of money left after all expenses such as cost of goods sold operating expenses loan interests depreciation tax one time fees are deducted from the revenue. Revenue can be found at the top of the income statement which is one of the three primary financial statements of a business whereas net income is located at the bottom of the income statement.

The formula for net income is simply total revenue minus total expenses. Net income goes even further than net gross margin because you deduct all other expenses including overhead and taxes. The basic difference between revenue and net income could be the fact that the former is the total amount of money actually earned by an entity during a particular period whereas the latter is the actual total earnings that are left with a company after making all the necessary adjustments like depreciation. Income or net income is a company s total earnings or profit.