Revenue Is Net Income
Income statements flow in a logical sequence.
Revenue is net income. Net income also called net profit is calculated by deducting an organisation s total expenses from their total revenue. However their net income with all costs subtracted was only 6 67 billion. If your net revenue was 70 000 and you spent 25 000 running your business your net income would be 45 000. The net income of a company is the result of a number of calculations beginning with revenue and encompassing all expenses and income streams for a given period.
At the bottom of the statement is the net income what s left over after all expenses are deducted. The formula for net income is simply total revenue minus total expenses. 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. Revenue is the total amount of income generated by the sale of goods or services related to the company s primary operations.
Of course both statistics are in a wider context extremely healthy. Example let s say that we have the gross revenue of 110 000 with a sales discount of 10 000. And if you invested 150 000 in the store your return on investment your net profit divided by the amount of your investment would be around 30. Calculating ni for.
They begin with the total amount of money coming into a company reflected in gross and net revenue at the top of the statement. Net income ni is known as the bottom line as it appears as the last line on the income statement once all expenses interest and taxes have been subtracted from revenues. It s basically the spare money left over at the end of a financial year and a business might use it to invest expand save or give out to shareholders. Walmart was officially the world s highest earning company in terms of revenue in the year 2018 with 515 billion in total revenue.
Income atau yang biasa disebut pendapatan atau keuntungan yang didapat ternyata memiliki arti berbeda dari revenue dalam konteks keuangan income hampir selalu mengacu pada laba bersih. People often refer to net income as the bottom line as it is the last line item on an income statement. Income or net income is a company s total earnings or profit.