Income Statement
Revenue
Total sales the company generated over the reporting period.
Definition
Revenue (sometimes called sales or turnover) is the total dollar value of goods and services sold during the period, before any expenses are subtracted. It's the top line of the income statement and the starting point for every other margin and per-share metric.
Why it matters
Revenue tells you the scale of the business and the rate at which it's growing or contracting. A company with shrinking revenue can't grow earnings forever through cost-cutting alone.
How Standard Equity uses it
We display revenue in the company's reporting currency, in millions, normalised to fiscal year. For banks, revenue is total revenue (NII + non-interest income), not interest income alone. Where analysts do not cover a year, the estimate for every company but a holding company is a trend fitted to the company's own history in which only growth above the risk-free rate of its currency fades (a company growing at that rate keeps doing so, rather than sliding toward zero); the fair value model's first years use the same figures.
The metric
| Category | Income Statement |
|---|---|
| Unit | $M |