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what is net revenue formula. What Is the Formula for Net Revenue. Net income NI also called net earnings is calculated as sales minus cost of goods sold selling general and administrative expenses operating expenses depreciation interest taxes and.
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Net Income Total revenueincome Total Expenses As the net income is found on the bottom-most line of the income statement it is often termed as the bottom line. Net Revenue Formula Gross Revenue Directly Related Selling Expenses Why Calculate Net Revenue. For example if a company sells 100 products at 100 apiece during any given month its gross revenue for that month is 10000.
What Is the Formula for Net Revenue.
Mathematically it is represented as Net Sales Total Units Sold Sales Price Per Unit Sales Returns Discounts Allowances. For example lets take a look at a simple representation of an income statement. All revenues and all expenses are used in this formula. The 196 is normally the amount found on the top line of the income statement.
