Revenue is the total money a business brings in from sales. It is not profit. Profit is what remains after costs are subtracted. A company can post record revenue and still lose money if expenses are higher. Revenue is the top line. Profit is the bottom line.
Governments also collect revenue, mainly through taxes. Income tax, sales tax, property tax, and corporate tax all feed the public purse. The mix varies by country. Some rely heavily on income tax. Others lean on consumption taxes like VAT.
Businesses track revenue closely because it drives everything else. Growth in revenue allows expansion, hiring, and investment. Declining revenue forces cuts. Analysts watch revenue trends as a signal of a company's health and market position.
Key distinctions
- Revenue vs. profit
- Gross vs. net revenue
- Operating revenue
- Government tax revenue
- Revenue recognition rules
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