Is revenue or income more important?

Question

Zippia Team · Accepted Answer

Income is more important than revenue. Because income indicates whether a business is making money or not, it's usually considered the most important of the two. After all, it doesn't matter how much revenue you're earning if your expenses are outpacing it.

For example, investors will look at a company's income to see how effectively it's operating and how much money it's making in comparison to its revenue.

If the company's income is too low, investors likely will be more hesitant to invest in it. If it's high, that's a good sign that the company has a good handle on its expenses and is operating efficiently.