Annual Revenue
Example
Amazon, for instance, generated over $469 billion in annual revenue in 2021, with its sales driven by e-commerce, cloud computing services, and media offerings like Prime Video.
Definition
Annual revenue is the total amount of money a company generates from its operations during a fiscal year. This figure includes all sales of goods and services but does not account for expenses like taxes, operating costs, or interest payments. Annual revenue is a key metric for assessing a company’s financial performance and growth potential. It provides investors, creditors, and stakeholders with a snapshot of the company’s ability to generate sales and maintain its business over time. It also serves as a benchmark for comparing the company’s performance against its competitors or industry averages. Tracking annual revenue is crucial for financial planning, as it helps businesses set goals, allocate resources, and make informed decisions about expansion, investments, and cost management.
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