Net Revenue Vs Income
Income example apple inc.
Net revenue vs income. Small business owners can look at their net revenue vs. Example let s say that we have the gross revenue of 110 000 with a sales discount of 10 000. Just as revenue is the top line net income is the bottom line or the bottom figure on a company s income statement. Let s quickly dive deeper into these two terms before we get started.
Revenue vs net income in this the total value of gross sales can be calculated by multiplying the total number of items that the company is able to sell during a particular period with the selling price quoted per item. Let s go back to the hypothetical shoe store. Revenue refers to the total amount of money that is generated by the sales of goods and services from the company s operations. Aapl posted a top line revenue.
Revenue is also called top line in financial context. The net revenue is what a company earns as a whole and the net income that the company is left with after bearing all the expenses and adding other sources of income. Many investors also report their income and the. Your management department may make decisions on whether to continue selling a product based on the gross margin of the good.
Revenue is the total amount of sales generated by a company while income refers to the net profit earned minus expenses. For a business income refers to net profit i e. Recognizing and reporting revenue are critical and complex problems for accountants. Net income to see if their business is providing a good return on their money as well as paying them a decent salary.
Income can sometimes be used to mean revenue or net income. If your net revenue was 70 000 and you spent 25 000 running your business your net income would be 45 000. This guide provides an overview of the main differences between revenue vs income. For individuals however income generally refers to the total wages salaries tips rents interest or dividend received for a specific time period.
Revenue is the sales amount a company earns from providing services or selling products the top line. Net income on the other hand is the profit that is left after subtracting all the expenses cost of goods sold expenses depreciation interest and taxes etc from revenue.