What are Revenues?
Revenues are monies that a company receives from business activities, before expenses or taxes are removed. It includes all sales and can increase shareholder equity. When revenues increase consistently over many quarters and years that is a good sign of company's ability to growth and we have found that Revenues are not something that corporate executives can manipulate, like they may be able to do with earnings results) and therefore Revenue Growth is one of the most reliable financial data especially in times of trouble.
How is Revenue Calculated?
While a bit obvious, if a company has sold $30 million in products and has incurred 10 million in costs in the process, the company's revenue is still $30 million. (Expenses are not counted in Revenue).
