Income Vs Revenue Vs Earnings

Revenue is the total income earned by a company for selling its goods and services.

Income vs revenue vs earnings. Earnings are the bottom line on a company s income statement and profits. The key difference between earnings and revenue is that earnings are the difference between income and expenses for a period of time whereas revenue is the total income that a company generates through trading products and services. The higher the margin the better the financial health of the business. The net profit margin is the percentage of net earnings over total income.

Revenue is the total amount of income earned in a period before expenses have. Income can sometimes be used to mean revenue or net income. Made total revenue of inr 10 00 000 in fy18 with a net profit of inr 80 000. Earnings and net income are commonly used as synonyms.

In simple terms revenue is the income a business generates when it provides a service or a product to a consumer. It is the amount earned by a business from their day to day activities. Made total sales of inr 8 00 000 with a net profit of inr 80 000. Earnings on the other hand are the inflow of money after all the expenses i e profit from a business in their daily operations.

Income net income is the amount of money a company retains after subtracting all expenses associated with operations. For example abc ltd. While revenue includes earning generated only through the sale of goods and or services associated with the company s primary operations income also includes earning from other operations like. Revenue is a subset of income which includes earnings only from the primary operations of the business.

Revenue is the total amount of money a company generates from its core operations. Revenue is the sales amount a company earns from providing services or selling products the top line. Therefore net income is known as the bottom line of a company s income statement.