Revenue

RECENT NEWS
SeekingAlpha  4 hrs ago  Comment 
By Trefis: VMware (NYSE:VMW) announced its Q2 2014 earnings on July 22, reporting a year-over-year (y-o-y) increase in product license revenues (+16%) and services revenues (+18%). VMware’s net revenues of $1.46 billion for the quarter were...
SeekingAlpha  5 hrs ago  Comment 
By Trefis: EMC (NYSE:EMC) announced its second quarter earnings on July 23, reporting a 5% year-on-year growth in net revenues to $5.9 billion. The company's services revenues rose by almost 9% over the prior year quarter to $2.6 billion, while...
Forbes  Jul 25  Comment 
The company’s services revenues rose by almost 9% over the prior year quarter to $2.6 billion while its product revenues stayed flat at about $3.3 billion. Much of the growth was driven by VMware (+17%), Pivotal (+28%) and RSA Security (7%)...
Forbes  Jul 25  Comment 
Ameritrade’s asset-based business grew by 12% year-on-year (y-o-y) to $430 million, while low trading volumes kept trading commission revenues flat over the prior year quarter at $317 million. As a result, the brokerage posted a mild 5% y-o-y...
newratings.com  Jul 25  Comment 
LONDON (dpa-AFX) - British Sky Broadcasting Group Plc, known as BskyB, (BSYBY.PK, BSY.L) reported Friday that its fiscal 2014 pre-tax profit declined to 1.082 billion pounds from last year's 1.257 billion pounds. The latest results included...
Cellular News  Jul 24  Comment 
Nokia has reported an 11 percent fall in its revenues, on a continuing operations basis, and a small loss of for the second quarter of this year. Click here for more.
newratings.com  Jul 23  Comment 
PHOENIX (dpa-AFX) - Freeport-McMoRan Inc. (FCX) on Wednesday reported a profit for the second quarter that was flat with last year as strong revenue growth was more than offset by one-time charges. Revenues for the quarter beat analysts'...
newratings.com  Jul 23  Comment 
NEWCASTLE UPON TYNE (dpa-AFX) - Sage Group plc (SGE.L), a provider of business management software, reported Wednesday that group organic revenues in the third quarter increased 4.3 percent. Looking ahead, the company expects performance in the...
Cellular News  Jul 22  Comment 
Huawei has reported a 19 percent jump in its first half revenues of CNY135.8 billion (US$21.9 billion) compared to a year ago. Click here for more.
newratings.com  Jul 22  Comment 
OAK BROOK (dpa-AFX) - McDonald's Corporation (MCD) reported second-quarter net income of $1.39 billion or $1.40 per share, compared to $1.40 billion or $1.38 per share, last year. On average, 25 analysts polled by Thomson Reuters expected...




 

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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