Revenue

RECENT NEWS
newratings.com  2 hrs ago  Comment 
BONN (dpa-AFX) - German telecom giant Deutsche Telekom AG (DTEGY.PK), the parent company of T-Mobile US Inc. (TMUS), reported Wednesday a sharp decline in first-quarter profit, reflecting the absence of prior year's hefty stake sale gain....
newratings.com  3 hrs ago  Comment 
mutares increased its revenues and operative earnings in the first quarter DGAP-News: mutares AG / Key word(s): Quarter Results/Development of Sales mutares increased its revenues and operative earnings in the first quarter 13.05.2015 /...
Forbes  May 11  Comment 
As stated in our pre-earnings note, much of AOL’s revenue growth came from the growth of its programmatic platform across the third-party network. The third-party ads division grew by 19% year over year to $231.6 million. Furthermore, AOL...
Automotive World  May 11  Comment 
Last year, the trucking industry generated US$700.4bn, according to the latest edition of American Trucking Trends, making 2014 the first year in history the industry topped US$700bn in total revenue. “Last year, we saw freight volumes grow...
The Economic Times  May 10  Comment 
Says VOIP calls cannot be brought under ‘same service same rules’ umbrella as they were fundamentally different from traditional telephony.
The Economic Times  May 10  Comment 
The ARPU for CDMA operators like MTS, Reliance Communications, Tata Teleservices increased by 4.8 per cent yer-on-year to Rs 109.
The Economic Times  May 8  Comment 
Westlife Development Ltd posted a 1% increase in revenues to Rs 180.7 crore during Jan-March quarter on the back of store expansion.
Reuters  May 7  Comment 
Orbitz Worldwide Inc on Thursday reported a quarterly loss, missing analysts' expectations of a profit as a rise in fraudulent transactions added to costs.
BBC News  May 7  Comment 
Shares in Chinese e-commerce giant Alibaba rise 7.5% after it reports a strong rise in revenues and appoints a new chief executive.
newratings.com  May 7  Comment 
OTTAWA (dpa-AFX) - Canadian Solar, Inc. (CSIQ) reported that first-quarter net income to company soared to $61.33 million or $1.04 per share from $3.78 million or $0.07 per share in the prior-year quarter. On average, four analysts polled by...




 

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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