Revenue Vs Operating Income

Revenue or total net sales 12 5 billion the net sales are its top line.

Revenue vs operating income. So while revenue shows the total amount of money coming in income shows the total amount coming in and out. In casual conversation revenue and income can mean the same thing. These metrics are reported on a financial statement known as the income statement are income sta. Let s quickly dive deeper into these two terms before we get started.

This guide provides an overview of the main differences between revenue vs income. On your financial statements net revenue and operating income are separate distinct terms. What is revenue vs income. Gross profit 4 3 billion total revenue of 12 5 billion cogs of 8 2 billion.

If the operating profit margin is high this means that there is a significant amount of revenue available after covering operating expenses. In accounting the terms sales and revenue can be and often are used interchangeably to mean the same thing. Revenue sales revenue sales revenue is the income received by a company from its sales of goods or the provision of services. In accounting a gain is the result of a peripheral activity such as a retailer selling one of its old delivery trucks.

Interest expense interest income and other non operational revenue sources are not considered in computing operating income. If you say that these concepts are completely different then anyone who studies or is in the field of business is unlikely to argue with you. Revenue operating income and net income are metrics that explain how well a business is performing in regard to its primary goal of making a profit. Operating income margin revenue operating profit 100 operating profit margin measures how efficiently the main business activity can be conducted.

Penney as reported on their 10 k annual statement. The operating income vs revenue discussion centers on the relationship between these two terms and the factors that determine the amounts representing them. Operating income 116 million. Operating income also referred to as operating profit or earnings before interest taxes ebit is the amount of revenue left after deducting operational direct and indirect costs.

The highlighted areas include operating income and net. Net income example. Revenue is the total amount of sales generated by a company while income refers to the net profit earned minus expenses.