Net Income Vs Revenue Ratio

The drivers module shows relationships between state bank s most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of state bank of over time as well as its relative position and ranking within its peers.

Net income vs revenue ratio. If a software company earns 1 000 in revenue per day by hiring a software engineer and there are no other costs then the software company can pay 1 000 in salary and break even so the most effective salary to revenue. Net interest income reflects the difference between the revenue from a bank s interest bearing assets and expenses on its interest bearing liabilities. This ratio compares the net income and the revenue. The salary to revenue ratio is only meaningful if the company has no costs other than salaries or its non salary costs are so insignificant that the company can ignore them.

The revenue is the superset of the net income. Similar to the net profit margin ratio to find this ratio you just need to take the net income and then divide it by the total sales revenue. If payroll expenses come to 35 000 dividing this number by a net profit of 160 000 reveals a payroll to net profit ratio of 21 9 percent. State bank fundamental comparison.

Net income vs revenue. The return on revenue ror is tool for measuring the profitability performance of a company from year to year. Industry averages and statistics the cost of labor varies among different types of retail businesses so corresponding ratios achieved by successful businesses also will vary depending on the type of business. The product of this formula is expressed in a decimal number but multiplying the result by 100 converts it to percentage.

On the other hand the net income is the subset of the net income. Net revenue is revenue minus adjustments so you also subtract the 100 20 x 5 to get a net revenue of 47 900. Return on revenue shows the amount of revenue that ultimately becomes net income. The revenue is always more than the net income.

The revenue isn t dependent on the net income. The net income is always lower than the revenue. It s helpful to keep an eye on net revenue because it gives you a more complete picture of how much money you re taking in than revenue alone. The only difference between net income and revenue is the expenses.

The net income is dependent on the revenue. For example a company that paid 100 000 on payroll for a given month to. In other words net income is what s left over from revenue after all costs are deducted.