Revenue
The total income a company generates from its business activities before deducting any expenses.
What is Revenue?
Revenue (also called sales or turnover) is the total amount of money a business earns from selling its goods or services before deducting any costs or expenses. It is the first line of the income statement — the 'top line' — and the starting point for all profitability analysis. Revenue is recognized when earned under accrual accounting, not necessarily when cash is received. Revenue growth is a primary indicator of business momentum and is analyzed alongside margins (how much of each dollar becomes profit) and free cash flow generation. Total revenue can be broken down by product line, geography, customer segment, or channel to understand where growth is concentrated.
Example
Apple's FY2024 revenue of $391 billion was broken down as: iPhone $201 billion (51%), Services $96 billion (25%), Mac $30 billion, iPad $26 billion, and Wearables/Accessories $38 billion. Services revenue grew fastest at 13% year-over-year, shifting Apple's revenue mix toward higher-margin recurring revenue — making total revenue growth of 2% misleadingly modest.
Source: Apple 10-K FY2024