What is Revenue?

Revenue is a word describing any cash flowing into a business as a result of goods and services rendered.

It is sometimes call gross income, and is a representation of income before all expenses. It is notable, though, that revenue only includes receivables in the current period.

The Accounts Receivable on the company’ s books may include the entire cost of the goods or services rendered during that period, but the Revenue should generally only reflect the amount that is paid to the company in the current year.

Revenue is the inflow of liquid cash to a business. It is a major part of all fundamental analysis and is used is many ratios and formulas which indicate the health of a business.