In the simplest terms, company revenue generally applies to the income a business brings in through its normal, daily operations. In most businesses, the revenue will be labeled as ‘sales’ on the income statement, and it includes literally all the money that is generated before taxes, payroll, or other fees are taken out. Some of the most common revenue streams include:
The best and easiest way to calculate a company’s revenue is through an easy formula that provides a clear overview of the current financial situation. That formula looks like this:
Average Price Per Sale/Service x Quantity Sold = Total Revenue
So if your company is selling masks, each for $10, and you sell 1,000 of them in a month, then your total revenue is $10,000. Knowing this information can be helpful when it comes to deciding on your price point, and gauging where your business is financially at any point in time.