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Income statement

Revenue

The total money a company earns from selling its products or services before any costs are subtracted.

Part of the Reading Financial Statements course · Lesson 2 of 33
Formula
Units Sold × Average Selling Price (reported net of returns and discounts)

What it is

Revenue is the top line of the income statement. It is the value of goods sold or services delivered to customers over a period, recognized when the company has fulfilled its obligation to the customer. It is sometimes called sales or turnover.

Why it matters

Revenue shows how much demand a business is actually capturing and is the starting point for every profitability measure below it. A common pitfall is confusing revenue with cash collected: under accrual accounting a sale is recorded when earned, not when the customer pays, so growing revenue does not guarantee incoming cash.

How it's calculated

It is reported directly on the income statement as net of returns, allowances, and discounts; analysts often track it as units sold multiplied by average selling price.

How Quintarthai uses it

Revenue appears in the 10-year income statement on the Financials tab and the 5-year highlights on the Summary of every company page, and you can filter the North-American universe by revenue in the Stock Screener.

Cross-border note. Both IFRS (used by most Canadian filers) and US GAAP recognize revenue under the same core five-step model (IFRS 15 / ASC 606), so revenue is broadly comparable across TSX and US listings.

FAQ

Is revenue the same as profit?
No. Revenue is the total amount earned from sales before any expenses; profit is what remains after costs are subtracted.
What is the difference between gross and net revenue?
Gross revenue is total sales before deductions, while net revenue subtracts returns, allowances, and discounts — the reported top line is normally net revenue.
Related terms
See Revenue on a real company
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