Revenue Is What Comes Back In
Revenue is income received, especially by a business or government. It is not profit, and confusing the two is a common and expensive mistake.
Revenue is the money coming in before any costs are taken out. That is the distinction that trips people up: revenue is the top line, profit is what survives after expenses. A company can double its revenue and still lose money. The French original means what comes back.
- Income received. *Annual revenue.*
- Government income. *Tax revenue.*
- Revenue as a tax authority. *HM Revenue and Customs.*
Word forms
| Form | Word | Example |
|---|---|---|
| Noun | revenue | Rising revenue. |
| Plural | revenues | Advertising revenues. |
| Related | turnover | Annual turnover. |
| Related | profit | Operating profit. |
| Related | income | Household income. |
How it is used in a sentence
- Revenue rose but profits fell.The distinction in one sentence.
- Tax revenue funds public services.Government.
- Turnover is vanity, profit is sanity.A saying among accountants.
Money words in order
- Revenue / turnover — total money received
- Gross profit — revenue minus direct costs
- Operating profit — after running costs
- Net profit — after everything, including tax and interest
- Cash flow — money actually moving, which is not the same as profit
From French *revenu*, income, the past participle of *revenir*, to come back, from Latin *revenire* — the same verb as in *revenant*, one who comes back.
Revenue or turnover?
They mean the same. Turnover is the usual British word in company accounts; revenue is standard in American and international reporting.
Can a company have high revenue and no profit?
Easily. If costs exceed revenue, the business loses money however large the top line is.