Net Revenue Net Income

Revenue is the total amount of income generated by the sale of goods or services related to the company s primary operations.

Net revenue net income. Net revenue or net sales reporting only lists what s left on the bottom line calculated by subtracting the cost of goods sold from gross revenue for the same shoemaker. The only difference between net income and revenue is the expenses. Income also referred to as net income or net profit is your revenue once all your operating expenses have been subtracted. Example let s say that we have the gross revenue of 110 000 with a sales discount of 10 000.

Income or net income is a company s total earnings or profit. It is what is left of your revenue after you ve covered your expenses. Net revenue and net income are important figures that demonstrate a company s financial stability. An increase in ror is means that the company is generating higher net income with lesser expenses.

To figure out your net income subtract the cost of goods sold operating expenses interest and depreciation charges taxes and any miscellaneous expenses from your net revenue. If it s a law firm it s the money that clients pay for legal services. What is net income. The return on revenue ror is tool for measuring the profitability performance of a company from year to year.

Both net revenue and net income show up on your income statement and are typically included in reports presented to banks or investors when your company is seeking money for expansion additional materials or new equipment. This ratio compares the net income and the revenue. Net revenue reporting. People often refer to net income as the bottom line as it is the last line item on an income statement.

Net sales also called revenue represent all the money a company takes in from its customers in the course of its ordinary business activities. If it s a clothing store for instance this is the money that comes in from selling clothing. Net income goes even further than net gross margin because you deduct all other expenses including overhead and taxes. Net income is the bottom line on a business s income statement.