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Annual Revenue

Annual Revenue is the amount of money a company earns over the span of one year. The dollar amount does not include any costs or expenses. In order to properly calculate a company's annual revenue, you need to know the price and quantity of items/services sold.

Generally speaking, you can calculate a company's annual revenue by multiplying the price of sales by the number of items sold.

It is important to know that there is a strong difference between revenue and profit. Revenue is the amount of income that is generated by the sale of goods or services. Profit refers to the amount of income that is left over after considering the expenses, debts, operating costs and more that need to be accounted for.

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