Net revenue

ikar

Senior Member
Italy
Ciao a tutti,

The profit and loss account indicates how net revenue (money received from the sale of products before expenses are taken out) is transformed into net income.

Il conto profitti e perdite indica come il "net revenue" (somma ricevuta dalla vendita di prodotti prima che le spese siano state fatte) è trasformato in reddito netto.

Cosa vuol dire "net revenue"?

Thanks
 
  • beccamutt

    Senior Member
    English - US
    I think the problem here is that the original English text has the definition of "profit" in parenthesis for the word "revenue". It says "revenue" (which is close in meaning to income) yet describes "profit".

    Technically "net revenue" would be the same as "net income" in Italian (reddito netto), however given the definition money received from the sale of products before expenses are taken out, they're really describing "net profit" (utile netto).
     

    pescara

    Senior Member
    English-USA
    I think the problem here is that the original English text has the definition of "profit" in parenthesis for the word "revenue". It says "revenue" (which is close in meaning to income) yet describes "profit".

    Technically "net revenue" would be the same as "net income" in Italian (reddito netto), however given the definition money received from the sale of products before expenses are taken out, they're really describing "net profit" (utile netto).
    Sorry, but I don't agree. Money received from the sale of products before expenses are taken out is the definition of revenues.

    The amount remaining after expenses are taken out is net profit.

    Ciao.
     

    Miachetemio

    Senior Member
    Italian
    Sorry, but I don't agree. Money received from the sale of products before expenses are taken out is the definition of revenues.

    The amount remaining after expenses are taken out is net profit.

    Ciao.
    Absolutely right.
    In Italian "entrate" ; normally one talks about "total revenue", "net revenue" is quite unusual.
    Net revenue could be something like "gross income", but then the sentence should be "after expenses are taken out".

    Net income = net profit =bottom line => utile netto

    Net income= ( revenue-cost of sales- other costs).

    Il conto profitti e perdite indica come le entrate nette (?) ( somma ricevuta dalla vendita di prodotti prima di aver detratto le spese (conteggiata senza detrarre le spese)) sono trasformate in utile netto.
     

    pescara

    Senior Member
    English-USA
    Absolutely right.
    In Italian "entrate" ; normally one talks about "total revenue", "net revenue" is quite unusual.
    Net revenue could be something like "gross income", but then the sentence should be "after expenses are taken out".

    Net income = net profit =bottom line => utile netto

    Net income= ( revenue-cost of sales- other costs).

    Il conto profitti e perdite indica come le entrate nette (?) ( somma ricevuta dalla vendita di prodotti prima di aver detratto le spese (conteggiata senza detrarre le spese)) sono trasformate in utile netto.
    I like entrate. It expresses the concept more clearly than redditi.

    Net revenues are revenues before expenses are taken out, but after things like discounts offered to buyers. So, if my selling price for a product is $100, but I offer a 1% discount for large quantities, for a sale where a buyer buys a large amount, my gross revenues would be $100, but my net revenues would be $99.

    Ciao.
     

    k_georgiadis

    Senior Member
    English (AE)
    Recognizing that different companies use somewhat different terminologies:

    Gross Sales - less discounts, shipping costs = Net Sales (or Net revenue) - less variable costs of Production = marginal income - less fixed production costs/special manufacturing charges = Gross Profit - less expenses = Income before taxes (or EBITDA=earnings before interest & Depreciation/Amortization) - less interest/amortization/depreciation, less Income taxes = NET INCOME (or net earnings)
     
    Last edited:

    Miachetemio

    Senior Member
    Italian
    WR has net income = reddito netto

    Are you both agreeing, then, that this is inaccurate?
    My opinion is that it is not complete, so: yes, inaccurate but not wrong.

    For an individual, revenue and income are usually coincident.
    You salary ( plus what you get from other sources,like flats, land and so on) is the yearly revenue ( all the money that enters your house) and also your yearly income.
    It is normally defined "reddito individuale" and based on that..you pay "tassa sul reddito" ( if I am not wrong,you call it "income tax" in US)! After tax it becomes "reddito (individuale) netto".
    That's why WR reports "net income = reddito netto"; they could say "net income = guadagno netto" but then that would not be the expression we use for individuals.
    WR (and many other dictionaries, as for that) is not a technical dictionary for finance or economy or other and tends to consider words in their most common use.

    Corporations are allowed to make a clear distinction between all the money that enters the house (revenue) and what they really earn (income) and, believe me, they do!

    Hope that my quasi-English didn't make it even more confused and confusing.

    Ciao
     

    Miachetemio

    Senior Member
    Italian
    I like entrate. It expresses the concept more clearly than redditi.

    Net revenues are revenues before expenses are taken out, but after things like discounts offered to buyers. So, if my selling price for a product is $100, but I offer a 1% discount for large quantities, for a sale where a buyer buys a large amount, my gross revenues would be $100, but my net revenues would be $99.

    Ciao.
    "Reddito"is the term used by the Tax Office while "entrate"is used by companies. That's why "entrate" is more likeable than "redditi";)

    Before somebody starts shooting: it was a joke, they are equivalent terms.

    About net revenue,again: to me ( for all I know about European and Chinese systems) revenue is what is recorded in the book, that is what the company actually receives.
    I understood that you also consider some sort of potential or expected revenue and then - when this for whatever reasons does not become actual - you calculate the net revenue? Am I wrong?
    Sorry for asking more and more, but I am not familiar with the US system and I wouldn't like to get a wrong idea.

    Ciao
     
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