Finance Dictionary : Revenue


Learn about revenue (turnover), a pivotal financial metric that reflects a business's total income before accounting for expenses and taxes.



Revenue (Turnover) – A Crucial Financial Metric


Revenue, interchangeably referred to as turnover, represents the total income generated by a business before deducting expenses, taxes, and other financial obligations. It stands as a fundamental financial metric used to gauge a company’s financial performance and overall economic health.


This figure encapsulates the income derived from the core operations of a business, primarily through the sale of goods and services. Revenue is a key component for assessing a company’s growth, profitability, and sustainability. It serves as a starting point for various financial analyses, including the calculation of profit margins and other critical performance indicators.


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