Illustration
Sales of 100 and costs of 90 leave 10. Sales of 120 and costs of 115 leave only 5. Revenue growth alone does not prove better results.
Revenue measures sales over a period; profit remains after the relevant expenses.
Sales of 100 and costs of 90 leave 10. Sales of 120 and costs of 115 leave only 5. Revenue growth alone does not prove better results.
Distinguish gross, operating and net profit. Compare like measures and periods.
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