Sales revenue, also known as revenue or sales revenue, is the total amount a company earns by selling goods or services within a specific period of time. It is one of the most important metrics for evaluating a company's financial performance.
The basic formula for calculating sales revenue is:
Sales Revenue = Quantity Sold × Sales Price per Unit
For companies with multiple product lines, total revenue can be calculated by the sum of income from all products and services sold.
Sales revenue relates exclusively to revenue from sales and does not include costs. The profit, on the other hand, comes after deduction of production, operating and other costs:
Profit = Sales Revenue - Total Costs
Sales revenue is a key figure for a company's success. Sales can be increased through targeted marketing strategies, effective sales methods and optimized pricing. However, companies should also keep an eye on costs in order to achieve sustainable profit.