<h3 class="text-xl font-bold">Sales and profit</h3>
<strong class="text-gray-700 block pt-2 pb-1 dark:text-white">Meaning</strong>
Revenue is the amount of money a company receives from its customers through the sale of products/services in a period. Usually, sales are determined once a year or once a quarter.<br><br>
Profit or net profit is the surplus of a company remaining from sales after deduction of all costs.<br><br>
<strong class="text-gray-700 block pt-2 pb-1 dark:text-white">Interpretation</strong>
The higher a company's sales and profits are, the bigger the company is. The stronger the two key figures increase, the better. Strong growth is a clear indicator of a good competitive position and shows that the company's products are in demand. The more stable the key figures develop, the better. Large downward dips indicate a cyclical business model.<br><br>
Profit is available to the owners or shareholders of a company. It is either retained to finance investments in further growth or distributed to the owners/shareholders (in the form of a dividend).