Earning vs Revenue

By | February 14, 2017

Revenue is the total sales of a company where earning is the net amount left after subtract all fee to maintain business such as salary, operation cost, etc. Some company can have a big number of sale growth and small at earning if they are in the narrow profit/margin industry such as retail, hardware, oil & gas, etc. And some can have a big earning again small revenue, for example, when IBM moved out of hardware business (selling mainframes/servers which has huge revenue) and started services business they headed down in growth rate but had big earning growth rate.

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