Financial modelling terms explained


Revenue is the income that a company earns from its business activities. It is calculated as the total sales of a company during a specific time period, minus the cost of goods sold and other costs incurred during the same time period.SEO meta description: A retained earnings statement is a financial statement that shows a company's cumulative retained earnings from its earliest year to the current year. It is a statement of a company's net income, retained earnings and dividends.

What is Revenue?

Revenue is the income of a company or individual, typically expressed in monetary terms. It is generated from the sale of goods or services, and may include income from other sources, such as investments. Revenue is also referred to as sales, turnover, or income.

How is Revenue Calculated?

Revenue is typically calculated as the product of the number of units sold multiplied by the price per unit. However, there are a few variations that can be used. For example, some companies may calculate revenue as the number of units sold multiplied by the average selling price, which takes into account discounts and promotions. Alternatively, revenue could be calculated as the number of units sold multiplied by the list price.

What is an Example of a Revenue?

Revenue, in the context of financial modelling, is the total amount of money that a company brings in through the sale of its products and services. This can be broken down into different categories, such as net sales, gross sales, and operating income. It is important to track revenue over time to see if it is increasing, decreasing, or staying the same. This can help managers make decisions about how to grow the business and increase profits.

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