Gross Revenue refers to the total sales made by a business. It thereby highlights a business’s ability to sell products and services, but it does not reveal if a company is able to strike a profit.
It is the company’s revenue minus the cost of goods sold (COGS). In this case it is also referred to as gross profit and, when expressed as a percentage of revenue, gross margin. Gross Revenue can be found on the top line of a company’s income statement. In order to calculate the Gross Revenue, together the total value of all sales must be added together.
- Gross Revenue = Total Revenue – Cost of Goods Sold
- Net Revenue
- Gross Profit