Revenue (top line)

Revenue is the total value of goods and services a company sold during the period, before any costs are taken out. It's the first number on the P&L for a reason - every other number on that page is downstream of it.

How it's calculated

For a manufacturing company:

• Revenue = Units sold × Average selling price

For a services company:

• Revenue = Number of clients × Fee per client (or hours billed × rate)

For a bank:

• Revenue is usually called "interest income" + "fee income".

Indian listed companies report revenue net of GST. The customer pays ₹118 (₹100 + ₹18 GST), the company shows ₹100 as revenue.

What to look for

Year-over-year growth. Has revenue grown vs the same quarter last year? Compare to the company's own history - is it accelerating, decelerating, or steady?

Quality of growth. A jump from a one-time bulk order isn't the same as steady underlying demand. Read the management commentary for clues.

Mix. Did the growth come from one big product or geography? Concentration is fragile.