Page "Revenue" Paragraph 12

Revenue is a crucial part of financial statement analysis.

A company ’ s performance is measured to the extent to which its asset inflows ( revenues ) compare with its asset outflows ( expenses ).

Net Income is the result of this equation, but revenue typically enjoys equal attention during a standard earnings call.

If a company displays solid “ top-line growth ,” analysts could view the period ’ s performance as positive even if earnings growth, or “ bottom-line growth ” is stagnant.

Conversely, high net income growth would be tainted if a company failed to produce significant revenue growth.

Consistent revenue growth, as well as net income growth, is considered essential for a company's publicly traded stock to be attractive to investors.