Helpful basic advice on the difference between revenue and profit.

rev and profit

Revenue can most easily be thought of as the top line of an income statement or profit and loss statement. Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. If the company is a shoe retailer, the money it makes from selling shoes before accounting for any expenses is its revenue. If the company also has income from investments or from a subsidiary company, that income is not considered revenue; it does not come from the sale of shoes. Additional income streams and various types of expenses are accounted for separately. For the fiscal year ended January 28, 2017, JCPenney’s (JCP) revenue was $12.55 billion. This is the proceeds from sales in the company.

Profit, conversely, is the infamous bottom line. This is called net profit, because it is the amount of income that remains after accounting for all expenses, debts, additional income streams and operating costs. JCPenney’s profit was $1 million for the fiscal year.

Read more: What is the difference between revenue and profit? | Investopedia


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