“The company had $10 million in profit last year — they sold a lot of product.”
Usage Entry 1108 / 1350 60-second read
Revenue vs. Profit
Total income versus income minus expenses.
The comparisoni
“The company had $10 million in revenue last year — we don't know the profit without subtracting expenses.”
The ruleii
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REVENUE = total in. PROFIT = what's left.
REVENUE (or "top line") is all the money a business takes in from sales. PROFIT (or "bottom line") is revenue minus all expenses. A business can have huge revenue and zero profit.
Memory aidiii
Remember it like this
Revenue = Top line. Profit = Bottom line.