Because revenues do not account for costs or expenses, a company’s profits, or bottom line, will be lower than its revenue. There is a standard way that most companies calculate revenue.

This article breaks down what annual revenue is, how to calculate it, and why it matters for businesses. It also explains the ...

Profit is calculated using the following calculation: Profit = Revenue – Total costs For example if a business has revenue of £50,000 and total costs of £41,000, they will have an overall ...