Total revenue (Sales)

What is Total Revenue?

Total Revenue, also called Sales, is revenue derived from the product or service a company sells. Total revenue is an important metric that shows how much money a company generates from selling its goods or services over a specific period of time.

Why is Total Revenue important?

While revenue does not reveal much about a company’s profitability, it does show how fast a company is growing in terms of sales growth. In addition, revenue is an important metric that helps investors calculate things like Net Income and EBITDA. 

How is Total Revenue calculated?

Total Revenue is calculated by multiplying the number of goods and/or services sold by the price of those goods or services.