Revenue
What does it mean
Revenue represents the sum total of all the goods and/or services sold to customers during a certain period of time. Revenue, sometimes referred to as "Top Line," "Gross Revenue," or "Gross Sales" is the first entry of an Income Statement.
Formula: Quantity Sold x Sale Price
Why does it matter
Revenue is the lifeblood of a business. It is the sum total of why the company exists in the first place. If the business is a coffee roaster, it represents how much coffee they sold to customers during a certain period of time.
From a banks perspective, the primary goal of giving out a loan is to ultimately get your money back (plus interest :). The profit a business uses to repay its loans begins with Revenue.
Other Relevant Terms
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Greetings! I'm Clay Sharkey, and there is nothing I like more than assisting others in achieving their goals. I firmly believe that by enhancing a banker's understanding of their customer's' business, they can provide superior service. This superior service, in turn, leads to stronger relationships for the bank, improved performance for the businesses, and better experiences for our communities. Win-win-win.
