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What is company revenue? How do you calculate it?

June 21, 2022
in ALL, College+, College+, Entrepreneurship, High School, High School, Middle School, Money & Finance, Working Professionals
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A company’s revenue is crucial for the running of an organisation, whether it is a small business or a large business. There are two fundamental terms to remember when calculating a company’s revenue.Gross Revenue (includes expenses) = Selling price x Number of units sold.

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Bottom line

When an investor does the valuation of the company, he considers the net profit and net revenue before approving for funds. Hence, the net profit of a company should be higher than all kinds of expenses. Otherwise, it will reflect loss on the income statement.

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Skillioma (July 3, 2022) What is company revenue? How do you calculate it?. Retrieved from https://www.skillioma.com/what-is-company-revenue-how-to-calculate-it/.
"What is company revenue? How do you calculate it?." Skillioma - July 3, 2022, https://www.skillioma.com/what-is-company-revenue-how-to-calculate-it/
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"What is company revenue? How do you calculate it?." Skillioma [Online]. Available: https://www.skillioma.com/what-is-company-revenue-how-to-calculate-it/. [Accessed: July 3, 2022]

 

Power Words :

  • Gross
  • Revenue
  • Profit
  • Income
  • Turnover
  • Valuation

 

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Tags: Business SkillsEntrepreneurshiphow companies calculate revenuerevenue definitionrevenue examplesthe difference between revenue and income
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