Deferred Revenue
Cash collected for goods or services not yet delivered — a liability, not income, until earned.
What it is
Deferred revenue is money a company has already collected but has not yet earned because the product or service still has to be delivered. It sits on the balance sheet as a liability, often called unearned revenue or a contract liability. As the company delivers, it moves the amount into reported revenue.
Why it matters
For subscription and software businesses, deferred revenue is a leading indicator of future sales already paid for, hinting at revenue visibility. It is also a sign of pricing power when customers pay upfront. Because the cash is in hand but the obligation remains, it shapes both liquidity and how you read the income statement.
How it's calculated
It is recorded when cash is received ahead of delivery, then reduced (and recognized as revenue) as the obligation is fulfilled; there is no ratio formula, it is a balance taken directly from the liabilities section.
How Quintarthai uses it
Deferred or unearned revenue, when material, appears in the liabilities section of the Financials tab on a company page.