Revenue (Total Revenue)
Total income generated from business operations.
Definition
Revenue is the top line of the income statement representing all income earned from a company's core business activities. For banks, total revenue typically equals net interest income plus noninterest income. For non-bank financials, it includes fees, commissions, premiums, or transaction revenue.
Why It Matters
Revenue growth indicates whether a company is expanding its market share and pricing power. Flat or declining revenue forces companies to rely solely on cost cuts for earnings growth, which is unsustainable long-term.