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Revenue

Business
  • What It Means
  • Why It Matters
  • Across Datreal Countries
  • Common Questions
  • Related Terms

Table of Contents

  • What It Means
  • Why It Matters
  • Across Datreal Countries
  • Common Questions
  • Related Terms

Revenue is the income a business earns from ordinary sales of goods and services during a reporting period, before expenses are deducted.

What It Means

Financial statements usually report net revenue (net turnover) after sales rebates, VAT, and other taxes directly linked to sales are removed.

Revenue measures sales activity. It does not show how much the company kept after salaries, materials, interest, tax, and other costs.

Why It Matters

  • Use revenue to compare business scale and sales growth across like-for-like reporting periods.
  • Check the reporting period, currency, and whether the figure is consolidated before comparing companies.

Across Datreal Countries

The closest local concept can have a different scope, identifier, or valuation method. Check the responsible authority when the distinction affects a filing or transaction.

  • Latvia

    Apgrozījums

    The local financial-statement label follows national presentation rules; compare the same period and accounting scope.

  • Lithuania

    Apyvarta

    The local financial-statement label follows national presentation rules; compare the same period and accounting scope.

  • Estonia

    Müügitulu / käive

    The local financial-statement label follows national presentation rules; compare the same period and accounting scope.

  • Finland

    Liikevaihto

    The local financial-statement label follows national presentation rules; compare the same period and accounting scope.

  • Sweden

    Nettoomsättning

    The local financial-statement label follows national presentation rules; compare the same period and accounting scope.

Common Questions

  • Is revenue the same as profit?

    No. Revenue records sales income; profit is what remains after relevant expenses.
  • Does revenue include VAT?

    Net revenue in annual accounts generally excludes VAT and similar taxes directly linked to sales.

Related Terms

  • Business

    Limited Company

    A limited company is a separate legal entity whose owners' financial liability is generally limited to their investment, subject to national law and…

  • Business

    Value Added Tax

    Value added tax (VAT) is a tax on consumption that is usually built into the price of goods and services. Businesses collect it and send it to the…

  • Business

    Gross Profit

    Gross profit is revenue minus the cost of sales directly associated with the goods or services sold. It measures the margin before operating…

  • Business

    Industry Benchmark

    An industry benchmark compares a company's metric with a defined peer group. The group can use business activity, country, size, period, or available…

  • Business

    Net Profit Margin

    Net profit margin compares a company’s net profit with its revenue for the same reporting period. Datreal divides net profit by revenue and presents…

  • Business

    Revenue per Employee

    Revenue per employee compares reported revenue with reported headcount. Datreal divides revenue by the number of employees for the same reporting…

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