Revenue

RECENT NEWS
Benzinga  6 hrs ago  Comment 
Navigant Research, via DigiTImes, reports worldwide revenues from LED luminaires used in outdoor and parking applications will grow to $1.4 billion, from the current $921 million annually in 2014 by the year 2021. A substantial decline in energy...
DailyFinance  Aug 18  Comment 
This past quarter saw the execution of Rediff.com’s strategy: to retain and grow its approximately 15 million engaged users through a variety of digital offerings and then earn revenue from digital services provided to these...
SeekingAlpha  Aug 17  Comment 
By Mobile Guru: On August 14th, Marathon Patent Group (NASDAQ:MARA) released its second quarter report. As part of the release Marathon reported record revenues of $3.8M and Non-GAAP income of $0.21/share. Revenues grew by 151% year over year and...
Cellular News  Aug 15  Comment 
Mobile services revenues in the USA declined 2% during the second quarter of this year, reflecting a drop of around a billion dollars making it one of the biggest revenue declines in recent times. Click here for more.
The Hindu Business Line  Aug 14  Comment 
Air India should look to earn revenues through various measures including advertisement on tickets, boarding cards and buses that ferry passengers, said Ashok Gajapathi Raju, Union Civil Aviati...
newratings.com  Aug 14  Comment 
Schweizer Electronic AG: SCHWEIZER reports successful first Half-Year 2014: Revenues and Net Profit increased by 13%, EBIT boosted by 24% - Sales expectations at the upper end of the previous forecast - DGAP-News: Schweizer Electronic AG / Key...
Forbes  Aug 14  Comment 
It's not your imagination: you are paying more in taxes. Taxpayers are paying more in taxes than ever as revenues for 2014 are outpacing those for 2013. The good news in all of this? The federal deficit is finally shrinking.
newratings.com  Aug 13  Comment 
OTTAWA (dpa-AFX) - Solar power products company Canadian Solar Inc. (CSIQ) reported Wednesday a profit for the second quarter compared to a loss last year, reflecting strong margin improvement and double-digit revenue growth. Both earnings per...
guardian.co.uk  Aug 13  Comment 
World's largest security firm reverses half-yearly loss of £94m in 2013 to posts pretax profit of £85m in first half of 2014 G4S says it is continuing to rebuild ties with the UK government after the prisoner-tagging scandal, as it moved back...
newratings.com  Aug 12  Comment 
BEIJING (dpa-AFX) - China-based solar photovoltaic products maker ReneSola Ltd. (SOL) on Tuesday reported a turnaround to profit in the second quarter from last year, reflecting higher revenues and margins. Earnings per share for the quarter beat...




 

The term revenue most commonly refers to Net Revenue but it can also be used as Gross Revenue.

Revenue is the total amount of money a company takes in before any expenses.

Net Revenue is the amount of a company's gross revenue plus all negative revenue items. For instance, in the retail industry, gross revenue includes all sales made by a retailer during the accounting period. Net revenue, however, will also exclude the costs associated with items like refunds on returned items, discounts and other negative sales revenue items.

Often times, net revenue can refer to revenue a company receives after it pays its partners. For example, Google (GOOG) arrives at net revenue by subtracting Traffic Acquisition Costs (TACs) from its gross revenue. TACs are comprised of payments made to its Adsense network partners (Google ads displayed on third-party websites are subject to a revenue sharing program), as well as fees related to non-conventional partnerships (such as Google being the first search engine listed in the Mozilla Firefox built-in search toolbar).

This is a subtle difference from Cost of Goods Sold (COGS) - in the case of TACs, these are costs directly related to generating revenue (which is then split between different partners). COGS, on the other hand, refers to overhead and "manufacturing" costs related to the production of goods sold. Analogously, Google's COGS would include expenses incurred in data center operations.

Ratio analysis can be implemented and utilised for the comparative measurement of financial data among several companies of the same industry to facilitate wise investment, as ratios in general involve a process of standardization. Two main indicators-ratios can be used for the evaluation of a company's performance:

  1. Activity ratios: Asset Turnover or Efficiency Ratio = Total Revenue/ Assets

Activity ratios describe the relationship between the company's level of operations(usually defined as sales and the assets needed to sustain the activity). The higher the ratio, the more efficient the company's operations, as relatively fewer assets are required to maintain a given level of operations(sales), or the company expoits its assets in an efficient way maximising its sales. Monitoring the trends in these ratios over time and in comparison to other firms in the industry, can point out potential trouble spots or opportunities that would facilitate investing decisions.

  1. Profit Margins or Return on Sales or Profitability ratio = Profit/Revenue

It is a measure of a company's profitability and it is the relationship between the company's costs and its sales. The profitability ratio indicates the proportion of Revenue that form the company's profit, after deducting any operating and other expenses the company has. It can be also interpreted as the proportion of profits generated from each dollar of sales, showing how profitable a company is.

  1. Return on Assets (ROA) = ( (Net Income/Sales) * (Sales/Assets) )

This ratio is a combination of the two aforementioned ratios that can be summarised in the term Return on Assets, that measures the overall productivity of assets.

Net Revenue versus Total Revenue

Net Revenue (also Revenue, Net Sales, or Sales) is the total revenue or gross revenue minus the costs associated with returned or undelivered goods and commissions. Total Revenue or Gross Revenue on the other hand is simply all positive revenues. This distinction is particularly important for certain sectors like banking which relies heavily on commissions and Retail which can experience frequent returned items.[1]

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