Net Revenue Vs Net Income
Small business owners can look at their net revenue vs.
Net revenue vs net income. Your management department may make decisions on whether to continue selling a product based on the gross margin of the good. Net revenue and net income are important figures that demonstrate a company s financial stability. 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. Revenue is the sales amount a company earns from providing services or selling products the top line.
Net sales 和 net revenue通用 定义为 sales allowance for uncollectibles 2. Revenue is the total amount of sales generated by a company while income refers to the net profit earned minus expenses. 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. Revenue is also called top line in financial context.
Just as revenue is the top line net income is the bottom line or the bottom figure on a company s income statement. Income example apple inc. Net income 定义为 all revenues all expenses incurred income tax net income一般被用于 income statement里 3. Example let s say that we have the gross revenue of 110 000 with a sales discount of 10 000.
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. Income can sometimes be used to mean revenue or net income. Net income to see if their business is providing a good return on their money as well as paying them a decent salary. Revenue can be classified as gross revenue or gross sales and net revenue or net sales.
So while revenue shows the total amount of money coming in income shows the total amount coming in and out. Let s go back to the hypothetical shoe store. Let s quickly dive deeper into these two terms before we get started. 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.
If your net revenue was 70 000 and you spent 25 000 running your business your net income would be 45 000. Revenue refers to the total amount of money that is generated by the sales of goods and services from the company s operations.