Sales Revenue

Definition of Sales Revenue

The income generated from sales of goods or services.

Explanation of Sales Revenue

Sales revenue is the total income generated from the sale of goods or services over a specific period. It represents the primary source of income for businesses and is a key indicator of financial performance. For example, if a company sells 1,000 units of a product at $50 each, its sales revenue would be $50,000. Sales revenue is calculated before deducting expenses such as production costs, operating expenses, and taxes. It is a critical metric for assessing a company’s profitability, growth, and market share. Businesses track sales revenue to evaluate the effectiveness of their sales strategies, set financial goals, and make informed decisions about investments and resource allocation. By continuously monitoring and analyzing sales revenue, companies can identify trends, optimize their sales efforts, and drive sustainable growth.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.