Annual Revenue Meaning and Calculation

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What Is Annual Business Revenue?
How Does Annual Business Revenue Work?
How to Calculate Annual Business Revenue
Annual Business Revenue Example
Necklaces: $200 Rings: $100 Bracelets: $75
Necklaces: $200 x 500 = $100,000 Rings: $100 x 750 = $75,000 Bracelets: $75 x 1,000 = $75,000
What Is Considered Good Annual Small Business Revenue?
What Is Annual Business Revenue Used For?
The Importance of Annual Business Revenue
Is Including Annual Recurring Revenue Worthwhile?
Annual Revenue vs Annual Sales
Distinguishing Net Business Income from Gross Annual Revenue
Types of Revenue
Operating Revenue
Non-Operating Revenue
Interest If your company offers financing to customers or invests in the stock market, the interest you gain from these transactions falls under non-operating revenue. Dividends If your business invests in shares of another company, the profits you earn from this investment are part of your company's annual non-operating revenue. Rent income If you rent property or equipment, the money you receive from these rentals is part of your annual non-operating revenue. Asset and capital sales If you sell a piece of equipment to another company, then the sale price is part of your annual non-operating revenue. Contra revenue Unlike the other non-operating revenue, contra revenue has a negative value. Contra revenue, which can include returned goods, unpaid invoices, and unsold inventory, is a deduction from gross revenue.
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The Takeaway
Frequently Asked Questions
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About the Author
Su Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
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