revenue

noun, often attributive rev·e·nue \ ˈre-və-ˌnü , -ˌnyü \
Updated on: 14 Nov 2017

Definition of revenue

1 :the total income produced by a given source
  • a property expected to yield a large annual revenue
2 :the gross income returned by an investment
3 :the yield of sources of income (such as taxes) that a political unit (such as a nation or state) collects and receives into the treasury for public use
4 :a government department concerned with the collection of the national revenue

Examples of revenue in a Sentence

  1. The factory lost revenue because of the strike by the workers.

  2. The firm is looking for another source of revenue.

  3. Government officials have reported a decrease in revenue.

  4. state and federal tax revenues

Recent Examples of revenue from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'revenue.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of revenue

Middle English, return, revenue, from Anglo-French, from revenir to return, from Latin revenire, from re- + venire to come — more at come


Financial Definition of REVENUE

revenue

What It Is

Revenue, also called sales (or turnover, in the UK), refers to the value of the products and services a company sells.

Net revenue usually refers to a company's sales net of discounts and returns.

How It Works

Let's assume grocery store XYZ sold $100,000 worth of food for the year. It would record these sales as revenue on the very top of its income statement (as shown below).

Why It Matters

Revenue is a measure of how much raw income a company is bringing in from sales of its products and services. A company that sees its revenue rise every year signals that a company is selling more of its products and services which can help it grow. Falling revenues each year signal that a company is faltering or shrinking.

Generally, the more revenue a company brings in the more money a company has to work with to pay expenses and make a profit.

Generally accepted accounting principles (GAAP) and industry standards often determine when a company can record revenue. For example, if a wholesaler sells a product for $10,000, does it record the sale when it receives the order, when it ships the product a week later, or when it receives payment from the buyer a month after that? Revenue recognition standards answer these questions, which vary by industry and type of sale. You can usually learn what a company’s revenue recognition policies are in the notes to its financial statements.



REVENUE Defined for English Language Learners

revenue

noun

Definition of revenue for English Language Learners

  • : money that is made by or paid to a business or an organization

  • : money that is collected for public use by a government through taxes


REVENUE Defined for Kids

revenue

noun rev·e·nue \ ˈre-və-ˌnü , -ˌnyü \

Definition of revenue for Students

1 :money that is made by or paid to a business or organization
  • sales revenues
2 :money collected by a government (as through taxes)

Law Dictionary

revenue

noun, often attributive rev·e·nue \ ˈre-və-ˌnü, -ˌnyü \

legal Definition of revenue

1 :the total income produced by a given source
  • a property expected to yield a large annual revenue
2 :the gross income returned by an investment
3 :the yield of sources of income (as taxes) that a political unit (as a nation or state) collects and receives into the treasury for public use
4 :a government department concerned with the collection of national revenue


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