Revenue reserve is created out of revenue Profit . It is created out of Revenue Profit for exaple General Reserve, Dividend equalization reserve, Investment fluctuation reserve etc.
Sales (or revenue, it's the same thing) - cost of goods sold= Gross Profit
To calculate total revenue you simply multiply the quantity by the price. Total revenue includes expenses; therefore, total revenue isn't the same as profit.
Is the top line and GOP the same
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
Revenue reserve is created out of revenue Profit . It is created out of Revenue Profit for exaple General Reserve, Dividend equalization reserve, Investment fluctuation reserve etc.
Operating revenue is only revenue from basic business operating activities while net revenue is included both operating as well as revenue from non operating activities.
Sales (or revenue, it's the same thing) - cost of goods sold= Gross Profit
The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100
To calculate total revenue you simply multiply the quantity by the price. Total revenue includes expenses; therefore, total revenue isn't the same as profit.
Reserves are maintained from profit of current year business and profit is part of capital that's why reserves are also part of capital as if it is not maintained separately it will be included in profit or capital.
Is the top line and GOP the same
profit in a company this is increase in revenue received by the company. profit in a company this is increase in revenue received by the company.
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
cash register...profit...revenue cash register...profit...revenue
The Gross Profit Margin is an expression of the Gross Profit as a percentage of Revenue. Gross Profit Margin = Gross Profit/Revenue*100 [or] Gross Profit Margin = Revenue - (Cost of Sales)/Revenue*100 Cost of sales=it include all those expenses and income that will occur during manaufacturing and sales of goods and services
It is same when your revenue increases and at the same time it manages to maintain its profit %. Assuming a company has a turnover of 100 crores and has a running expenditure of 75 crores then profit is 25 crores which is 25%. If the company takes steps to increase its turnover and manages to increase the total turnover the next year to 200 crores and manages to keep its expenditure to 150 crores, this implies that the profit this time around was the same 25% and hence profit maximization happened the same as revenue maximization. But it is seldom the case. In many cases when a company strives to increase either, the other takes a hit.