Assessing Performance, Starting with Revenues
Revenue (or sales) is one of the most publicized and closely examined numbers in the financial statements. Firms often start their quarterly press releases by reporting the firms’ sales for the period, and only later do they mention earnings. Revenue is important because it is the end result of all the firm’s activities. The financing obtained, the resources acquired, and the goods and services produced are all designed to generate revenue (hopefully enough to cover all of the associated costs). Revenue is more than “the top line” on an income statement; it is also an important determinant of what...
- Assessing Performance, Starting with Revenues
- from Financial Literacy for Managers: Finance and Accounting for Better Decision-Making
- Publisher: Wharton Digital Press
- Released: May 2012
Calculating revenue and growth should be straightforward, but like most things in life, it isn’t. Discover various factors that affect revenue and growth and some different ways to measure them.
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