{"id":178219,"date":"2024-06-01T16:30:25","date_gmt":"2024-06-01T16:30:25","guid":{"rendered":"https:\/\/businessyield.com\/?p=178219"},"modified":"2024-06-01T16:30:25","modified_gmt":"2024-06-01T16:30:25","slug":"earnings-vs-revenue-vs-profit","status":"publish","type":"post","link":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/","title":{"rendered":"Breaking Down Earnings vs Revenue vs Profit in Financial Reporting","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n<p>Reflecting on my experiences working directly with businesses, I cannot overstate the importance of properly understanding&nbsp;the difference&nbsp;between revenue, earnings, and profit. As a result, evaluating a <a href=\"https:\/\/businessyield.com\/marketing\/key-performance-indicators-2\/\">business&#8217;s performance<\/a>, including its top line, bottom line, and income, is quite beneficial. I believe that gaining a deeper understanding of the difference between earnings and revenue (earnings vs revenue vs profit) can help you become more proficient in your <a href=\"https:\/\/businessyield.com\/finance-accounting\/financial-performance\/\">financial operations<\/a> as a business owner. <\/p>\n\n\n\n<p>So, as a seasoned business consultant who&#8217;s been around the block with a thorough understanding of economic terminology, I will break down the key differences between earnings, revenue, and profit (earnings vs revenue vs profit). So, read on!<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>Key Takeaways<\/p><cite>BusinessYield<\/cite><\/blockquote><\/figure>\n\n\n\n<ul>\n<li>Revenue, profits, and earnings are sometimes used interchangeably; however, they refer to separate things in the context of financial records.<\/li>\n\n\n\n<li>Revenue is the&nbsp;amount of money a business makes from regular commercial activities, such as sales.&nbsp;Revenue does not include business expenses, in contrast to earnings and profit.<\/li>\n\n\n\n<li>As a business owner, you can calculate your earnings by deducting your operational costs from your revenue. Make sure to account for additional running costs like as rent, taxes, and wages in addition to the item costs.<\/li>\n\n\n\n<li>A business&#8217;s profit is the amount of money it makes over the cost of goods purchased. Operating costs like as rent, salaries, and taxes may be left out of your analysis.<\/li>\n\n\n\n<li>Both revenue earnings and profit can influence the overall economic value of a business. <br><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-revenue\"><span id=\"what-is-revenue\">What is Revenue?<\/span><\/h2>\n\n\n\n<p>Revenue is the whole amount made from <a href=\"https:\/\/businessyield.com\/marketing\/inside-sales-vs-outside-sales-2\/\">sales activity<\/a>. More precisely, revenues are the amounts received from the sale of products and services before any costs are deducted. They provide a clear picture of a business&#8217;s total activity level to the reader of the financial statements.<\/p>\n\n\n\n<p><strong>Read also:<\/strong> <a href=\"https:\/\/businessyield.com\/finance-accounting\/how-to-calculate-revenue-in-business-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">How to Calculate Revenue In Business Accounting (Steps and Examples)<\/a><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Revenue Recognition Principle in TWO MINUTES!\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/37PPccwsYJI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-earnings\"><span id=\"what-are-earnings\">What are Earnings?<\/span><\/h2>\n\n\n\n<p>Earnings include all of the charges and deductions related to operating a business. This includes taxes, interest, production costs, and operational expenses. It establishes the profitability of a business and represents its actual financial performance.<\/p>\n\n\n\n<p>Now, you understand the definition of earnings and revenue, respectively, as well as their importance. Now, let\u2019s look at the clear difference between earnings and revenue ( Earnings vs Revenue).&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-earnings-vs-revenue\"><span id=\"earnings-vs-revenue\">Earnings vs Revenue<\/span><\/h2>\n\n\n\n<p>To better understand the clear difference, picture a company that sells 10 billion dollars worth of products in a year to gain a better understanding of the company&#8217;s revenue. The company&#8217;s total revenue is represented by every cent of those ten billion dollars; however, this amount does not indicate the company&#8217;s earnings.<\/p>\n\n\n\n<p>Assume the business owes eight billion dollars in total\u2014two billion in taxes, five billion in operational expenses, and one billion in debt. As a result, these revenue figures gradually decrease to the company&#8217;s actual earnings of $2 billion.<\/p>\n\n\n\n<p>Thus, earnings and revenue differ in the following key ways:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-recognition\"><span id=\"1-recognition\">#1. Recognition<\/span><\/h3>\n\n\n\n<p>Revenue is recorded at the moment of a transaction regardless of whether money is transferred. On the other hand, after revenue is received and associated expenses are covered, earnings are recognized.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-relevance-to-investors\"><span id=\"2-relevance-to-investors\">#2. Relevance to Investors<\/span><\/h3>\n\n\n\n<p>Both revenue and earnings can influence the overall economic value of a firm. That is to say, when assembling their portfolios, individual investors frequently consider the financial ratio between the two amounts, even if everyone has different objectives for making investments. High earnings, on the other hand, are more important to investors because they demonstrate that businesses can use their revenue wisely and profitably to develop, increasing the value of investors&#8217; portfolios.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-handling-of-costs-and-deductions\"><span id=\"3-handling-of-costs-and-deductions\">#3. Handling of Costs and Deductions<\/span><\/h3>\n\n\n\n<p>Revenue excludes expenses and deductions. It represents the full amount of money made. Earnings, on the other hand, represent the overall profit earned after deducting all appropriate expenses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-interpretation-as-a-monetary-measure\"><span id=\"4-interpretation-as-a-monetary-measure\">#4. Interpretation as a Monetary Measure<\/span><\/h3>\n\n\n\n<p>Revenue and earnings are two of the most crucial <a href=\"https:\/\/businessyield.com\/marketing\/key-performance-indicators-2\/\">financial indicators <\/a>of a business&#8217;s profitability during any given period. Earnings highlight a company&#8217;s financial health, whereas revenue indicates a company&#8217;s overall financial performance. To put it another way, earnings indicate how much a business can keep and use effectively after covering its basic operating costs and other outlays. In contrast, revenue indicates how much a business can sell.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-calculation\"><span id=\"5-calculation\">#5. Calculation<\/span><\/h3>\n\n\n\n<p>Revenue is determined by subtracting the value of goods sold from total sales. However, earnings are determined by deducting all costs, including taxes, from the overall revenue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-revenue-vs-earnings-vs-profit\"><span id=\"revenue-vs-earnings-vs-profit\">Revenue vs Earnings vs Profit<\/span><\/h2>\n\n\n\n<p>Revenue, earnings, and profit are arguably the three most used terms in the business world. They all refer to profitability metrics for businesses. These phrases are crucial financial measurement instruments; they can assist a company in comprehending how much money it makes, how much money it might have left over after operating costs, and how well a product balances its costs of production or acquisition, respectively.<\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\"  class=\"wp-block-file__embed\" data=\"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/Checklist-for-revenue-vs-profit-vs-earnings-1.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of Checklist-for-revenue-vs-profit-vs-earnings-1.\"><\/object><a id=\"wp-block-file--media-6f9d0b3d-133b-470f-ac7c-c966d9752f22\" href=\"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/Checklist-for-revenue-vs-profit-vs-earnings-1.pdf\">Checklist-for-revenue-vs-profit-vs-earnings-1<\/a><a href=\"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/Checklist-for-revenue-vs-profit-vs-earnings-1.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-6f9d0b3d-133b-470f-ac7c-c966d9752f22\">Download<\/a><\/div>\n\n\n\n<p>In other words, as a business owner, you can use this to your advantage when making decisions. Despite having different definitions, they are commonly confused and interchanged with one another. So, if you\u2019re among those who keep getting confused, stay with me as I proceed.<\/p>\n\n\n\n<p>Meanwhile, before I dive into their differences, you need to understand their respective core definitions. Having explained the definition of revenue and earnings above, I will now explain the core definition of profit before moving on to the differences.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-profit\"><span id=\"what-is-profit\">What is Profit?<\/span><\/h2>\n\n\n\n<p>Simply put, profit is the difference between your revenue and your expenses. Consequently, making a profit entails making more money than it costs to provide the goods or services. To calculate profit, businesses deduct their expenses from their total income using the following formula:<\/p>\n\n\n\n<p><strong><em>Revenue &#8211; Cost of Goods= Profit<\/em><\/strong><\/p>\n\n\n\n<p>If the value is positive, businesses profit rather than lose. They also try to grow sales, lower operating expenses, and maximize profits. Many investors and decision-makers use total earnings to assess a company&#8217;s success. Given my expertise, there are three types of profit, which include the following:<\/p>\n\n\n\n<ul>\n<li>Gross profit<\/li>\n\n\n\n<li>Operating profit<\/li>\n\n\n\n<li>Net profit<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/The-three-types-of-profit-2-1024x576.jpg\" alt=\"\" class=\"wp-image-178263\" srcset=\"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/The-three-types-of-profit-2-1024x576.jpg 1024w, https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/The-three-types-of-profit-2-300x169.jpg 300w, https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/The-three-types-of-profit-2-768x432.jpg 768w, https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/The-three-types-of-profit-2-1536x864.jpg 1536w, https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/The-three-types-of-profit-2-380x214.jpg 380w, https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/The-three-types-of-profit-2-800x450.jpg 800w, https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/The-three-types-of-profit-2-1160x653.jpg 1160w, https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/The-three-types-of-profit-2.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-gross-profit\"><span id=\"1-gross-profit\">#1. Gross Profit<\/span><\/h3>\n\n\n\n<p>As a business owner, it is vital to understand the term \u201cgross profit.\u201d It is a metric that assesses a company&#8217;s cost of sales. These sales figures solely contain the direct expenses of producing a company&#8217;s products. The greater the gross profit, the more efficiently a business makes the essential products that support its operation.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Profit Margin, Gross Margin, and Operating Margin - With Income Statements\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/uYM2YnwO-20?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-operating-profit\"><span id=\"2-operating-profit\">#2. Operating Profit<\/span><\/h3>\n\n\n\n<p>Operating profit is an estimate of the business&#8217;s other expenses. This type of profit is computed by deducting all of a business&#8217;s other expenses from its gross profit. Administrative costs, marketing and advertising campaign expenses, and random expenses are all examples of other expenses that affect the operational profit of a business.<\/p>\n\n\n\n<p>As a business owner, you can derive this kind of profit by dividing operating profit by total sales. This will help you evaluate both direct and indirect expenses you encounter as a business owner.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-net-profit\"><span id=\"3-net-profit\">#3. Net Profit<\/span><\/h3>\n\n\n\n<p>Net profit represents how much a business earns from each penny of sales. It is calculated as operating profit minus interest and taxes, where interest and taxes are the last two factors that affect the total profit of the company.<\/p>\n\n\n\n<p>Now that you have an understanding of their different meanings, let me take you through their primary differences in terms of different financial terms.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-1-financial-statements\"><span id=\"1-financial-statements\">#1. Financial Statements<\/span><\/h4>\n\n\n\n<p>Both revenue, earnings and profit make use of the same kinds of financial statements, such as profit and loss (PNL) and general ledgers. This is done for business planning; as a business owner, it is vital to know that strictly concentrating on one aspect, such as revenue, won&#8217;t provide a complete picture of your business&#8217;s financial prospects.<\/p>\n\n\n\n<p>Furthermore, financial statements include a list of items in addition to the location of costs on the page. Top-line revenue is the whole amount of money that a business makes before subtracting other expenses. Profit, or the amount of money a business keeps after accounting, is always shown on the bottom line.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-2-accounting-method\"><span id=\"2-accounting-method\">#2. Accounting Method<\/span><\/h4>\n\n\n\n<p>Accounting is the process of recording financial information like revenue, earnings, and profit. This process is influenced by two primary methods: cash accounting and accrual accounting.&nbsp;<\/p>\n\n\n\n<p>In cash accounting, money is recorded when it is earned or received, while accrual accounting tracks money after a transaction, regardless of when it is received.&nbsp;<\/p>\n\n\n\n<p>The key difference lies in how revenue and expenses are calculated. Accrual accounting records revenue as it is earned and expenses as they are incurred. On the other hand, cash accounting only records revenue and costs when money is exchanged.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-3-subdivision\"><span id=\"3-subdivision\">#3. Subdivision<\/span><\/h4>\n\n\n\n<p>Here, each financial term has a subcategory inside it. For example, revenue includes both operating and non-operating revenue. This refers to the operations that generate revenue for the business. Earnings include both earned and unearned income. Earned income comprises direct pay items such as salaries, wages, and other similar compensation. Unearned income is revenue, such as dividends or interest, that a business may anticipate receiving but has not yet received. Finally, profit includes both gross and net profit. These terms are used to describe profit calculations that either include or exclude expenses. Gross profit is calculated by deducting all costs and taxes from revenue to arrive at net profit.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-4-tax-records\"><span id=\"4-tax-records\">#4. Tax records<\/span><\/h4>\n\n\n\n<p>When recording revenue, income, or profit, tax documentation is essential. The revenue and profits of a business should be appropriately reflected in its tax paperwork, which is why selecting the appropriate calculation is crucial. A corporation can better manage its tax obligations and guarantee the accuracy of its earnings and profit estimates by calculating taxes accurately.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-is-earnings-and-revenue-the-same-thing\"><span id=\"is-earnings-and-revenue-the-same-thing\">Is Earnings and Revenue the Same Thing?<\/span><\/h2>\n\n\n\n<p>Revenue is the amount of money a business makes before subtracting its costs. In contrast, earnings is the amount of profit a business has made and is determined by deducting taxes, interest, and other costs from revenue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-does-earnings-mean-net-profit\"><span id=\"does-earnings-mean-net-profit\">Does Earnings Mean Net Profit?<\/span><\/h2>\n\n\n\n<p>Net profit is another way to refer to earnings. That is to say, after all expenses are eliminated, a company&#8217;s net earnings provide the most full picture of its success.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-is-sales-revenue-or-earnings\"><span id=\"is-sales-revenue-or-earnings\">Is Sales Revenue or Earnings?<\/span><\/h2>\n\n\n\n<p>One way to define sales is as money that customers pay. A company&#8217;s core revenue for a specific period is its sales. Revenue should logically be the greater amount. On the other hand, total revenue could sometimes fall short of total sales within a given period.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-can-earnings-be-higher-than-revenue\"><span id=\"how-can-earnings-be-higher-than-revenue\">How Can Earnings Be Higher Than Revenue?<\/span><\/h2>\n\n\n\n<p>Generally speaking, since revenue is an indication of the business&#8217;s entire sales, earnings will never exceed revenue. Profits are the take-home money for the company, calculated as revenue less all related expenses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-in-essence\"><span id=\"in-essence\">In Essence<\/span><\/h2>\n\n\n\n<p>Having seen firsthand the consequences of financial misunderstandings in businesses, I cannot overstate the necessity of understanding the complexities of revenue, earnings, and profit. It&#8217;s more than just making money; it&#8217;s about making sound decisions that lay the groundwork for your business!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-we-also-recommend-the-following\"><span id=\"we-also-recommend-the-following\">We Also Recommend the Following<\/span><\/h2>\n\n\n\n<ul>\n<li><a href=\"https:\/\/businessyield.com\/bs-business\/what-is-profit\/\" target=\"_blank\" rel=\"noreferrer noopener\">What Is Profit? Detailed Guide<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/businessyield.com\/information\/how-to-calculate-revenue\/\" target=\"_blank\" rel=\"noreferrer noopener\">HOW TO CALCULATE REVENUE FROM SALES: All You Should Know<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/businessyield.com\/finance-accounting\/how-to-calculate-revenue-in-business-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">How to Calculate Revenue In Business Accounting (Steps and Examples)<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/businessyield.com\/marketing\/traditional-marketing-definition-examples-and-differences\/\" target=\"_blank\" rel=\"noreferrer noopener\">TRADITIONAL MARKETING: Definition, Examples and Differences<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/businessyield.com\/finance-accounting\/sales-revenue\/\" target=\"_blank\" rel=\"noreferrer noopener\">SALES REVENUE: Definition, Formula, How to Calculate It &amp; Difference<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-references\"><span id=\"references\">References<\/span><\/h2>\n\n\n\n<ul>\n<li>accountingtools.com<\/li>\n\n\n\n<li>synder.com<\/li>\n\n\n\n<li><a href=\"https:\/\/www.investopedia.com\/ask\/answers\/070615\/what-difference-between-earnings-and-profit.asp\" rel=\"nofollow\">investopedia.com<\/a><\/li>\n<\/ul>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"Reflecting on my experiences working directly with businesses, I cannot overstate the importance of properly understanding&nbsp;the difference&nbsp;between revenue,&hellip;\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":257,"featured_media":178286,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[2931],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.9 (Yoast SEO v22.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Breaking Down Earnings vs Revenue vs Profit in Financial Reporting<\/title>\n<meta name=\"description\" content=\"Gaining a deeper understanding of earnings vs revenue vs profit can help you become more proficient in your business. Read to learn the differences...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Breaking Down Earnings vs Revenue vs Profit in Financial Reporting\" \/>\n<meta property=\"og:description\" content=\"Gaining a deeper understanding of earnings vs revenue vs profit can help you become more proficient in your business. Read to learn the differences...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/\" \/>\n<meta property=\"og:site_name\" content=\"BusinessYield\" \/>\n<meta property=\"article:published_time\" content=\"2024-06-01T16:30:25+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/2148780556.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"667\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Prisca Onyemaeme\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Prisca Onyemaeme\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/\"},\"author\":{\"name\":\"Prisca Onyemaeme\",\"@id\":\"https:\/\/businessyield.com\/#\/schema\/person\/96367b6a3b0e7eb913959a2ccc2ba796\"},\"headline\":\"Breaking Down Earnings vs Revenue vs Profit in Financial Reporting\",\"datePublished\":\"2024-06-01T16:30:25+00:00\",\"dateModified\":\"2024-06-01T16:30:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/\"},\"wordCount\":1898,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/businessyield.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/2148780556.jpg\",\"articleSection\":[\"Finance &amp; Accounting\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/\",\"url\":\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/\",\"name\":\"Breaking Down Earnings vs Revenue vs Profit in Financial Reporting\",\"isPartOf\":{\"@id\":\"https:\/\/businessyield.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/2148780556.jpg\",\"datePublished\":\"2024-06-01T16:30:25+00:00\",\"dateModified\":\"2024-06-01T16:30:25+00:00\",\"description\":\"Gaining a deeper understanding of earnings vs revenue vs profit can help you become more proficient in your business. Read to learn the differences...\",\"breadcrumb\":{\"@id\":\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#primaryimage\",\"url\":\"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/2148780556.jpg\",\"contentUrl\":\"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/2148780556.jpg\",\"width\":1000,\"height\":667,\"caption\":\"Image by freepik\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/businessyield.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Breaking Down Earnings vs Revenue vs Profit in Financial Reporting\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/businessyield.com\/#website\",\"url\":\"https:\/\/businessyield.com\/\",\"name\":\"BusinessYield\",\"description\":\"Helping You grow your business\",\"publisher\":{\"@id\":\"https:\/\/businessyield.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/businessyield.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/businessyield.com\/#organization\",\"name\":\"BusinessYield\",\"url\":\"https:\/\/businessyield.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/businessyield.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/businessyield.com\/wp-content\/uploads\/2018\/02\/cropped-busicon.png\",\"contentUrl\":\"https:\/\/businessyield.com\/wp-content\/uploads\/2018\/02\/cropped-busicon.png\",\"width\":512,\"height\":512,\"caption\":\"BusinessYield\"},\"image\":{\"@id\":\"https:\/\/businessyield.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/businessyield.com\/#\/schema\/person\/96367b6a3b0e7eb913959a2ccc2ba796\",\"name\":\"Prisca Onyemaeme\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/businessyield.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5e4c40784891fd0d03981e4068ef1a0?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5e4c40784891fd0d03981e4068ef1a0?s=96&d=mm&r=g\",\"caption\":\"Prisca Onyemaeme\"},\"description\":\"Prisca is a remarkable SEO business content writer, tech-savvy, digital marketer, and media specialist. She loves distilling the newest trends, sharing practical advice, and nurturing a profound understanding of the business world. Her journey is marked by a solid record of fostering startups, B2B, and P2P businesses. Her content is not just informative but insightful, forming a bridge between brands and their target audiences. What sets Prisca apart is not just her professional expertise but her dedication to empower readers with the knowledge to thrive in the ever-evolving world of business.\",\"url\":\"https:\/\/businessyield.com\/author\/prisca\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Breaking Down Earnings vs Revenue vs Profit in Financial Reporting","description":"Gaining a deeper understanding of earnings vs revenue vs profit can help you become more proficient in your business. Read to learn the differences...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/","og_locale":"en_US","og_type":"article","og_title":"Breaking Down Earnings vs Revenue vs Profit in Financial Reporting","og_description":"Gaining a deeper understanding of earnings vs revenue vs profit can help you become more proficient in your business. Read to learn the differences...","og_url":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/","og_site_name":"BusinessYield","article_published_time":"2024-06-01T16:30:25+00:00","og_image":[{"width":1000,"height":667,"url":"http:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/2148780556.jpg","type":"image\/jpeg"}],"author":"Prisca Onyemaeme","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Prisca Onyemaeme","Est. reading time":"9 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#article","isPartOf":{"@id":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/"},"author":{"name":"Prisca Onyemaeme","@id":"https:\/\/businessyield.com\/#\/schema\/person\/96367b6a3b0e7eb913959a2ccc2ba796"},"headline":"Breaking Down Earnings vs Revenue vs Profit in Financial Reporting","datePublished":"2024-06-01T16:30:25+00:00","dateModified":"2024-06-01T16:30:25+00:00","mainEntityOfPage":{"@id":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/"},"wordCount":1898,"commentCount":0,"publisher":{"@id":"https:\/\/businessyield.com\/#organization"},"image":{"@id":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#primaryimage"},"thumbnailUrl":"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/2148780556.jpg","articleSection":["Finance &amp; Accounting"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/","url":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/","name":"Breaking Down Earnings vs Revenue vs Profit in Financial Reporting","isPartOf":{"@id":"https:\/\/businessyield.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#primaryimage"},"image":{"@id":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#primaryimage"},"thumbnailUrl":"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/2148780556.jpg","datePublished":"2024-06-01T16:30:25+00:00","dateModified":"2024-06-01T16:30:25+00:00","description":"Gaining a deeper understanding of earnings vs revenue vs profit can help you become more proficient in your business. Read to learn the differences...","breadcrumb":{"@id":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#primaryimage","url":"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/2148780556.jpg","contentUrl":"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/2148780556.jpg","width":1000,"height":667,"caption":"Image by freepik"},{"@type":"BreadcrumbList","@id":"https:\/\/businessyield.com\/finance-accounting\/earnings-vs-revenue-vs-profit\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/businessyield.com\/"},{"@type":"ListItem","position":2,"name":"Breaking Down Earnings vs Revenue vs Profit in Financial Reporting"}]},{"@type":"WebSite","@id":"https:\/\/businessyield.com\/#website","url":"https:\/\/businessyield.com\/","name":"BusinessYield","description":"Helping You grow your business","publisher":{"@id":"https:\/\/businessyield.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/businessyield.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/businessyield.com\/#organization","name":"BusinessYield","url":"https:\/\/businessyield.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/businessyield.com\/#\/schema\/logo\/image\/","url":"https:\/\/businessyield.com\/wp-content\/uploads\/2018\/02\/cropped-busicon.png","contentUrl":"https:\/\/businessyield.com\/wp-content\/uploads\/2018\/02\/cropped-busicon.png","width":512,"height":512,"caption":"BusinessYield"},"image":{"@id":"https:\/\/businessyield.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/businessyield.com\/#\/schema\/person\/96367b6a3b0e7eb913959a2ccc2ba796","name":"Prisca Onyemaeme","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/businessyield.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f5e4c40784891fd0d03981e4068ef1a0?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f5e4c40784891fd0d03981e4068ef1a0?s=96&d=mm&r=g","caption":"Prisca Onyemaeme"},"description":"Prisca is a remarkable SEO business content writer, tech-savvy, digital marketer, and media specialist. She loves distilling the newest trends, sharing practical advice, and nurturing a profound understanding of the business world. Her journey is marked by a solid record of fostering startups, B2B, and P2P businesses. Her content is not just informative but insightful, forming a bridge between brands and their target audiences. What sets Prisca apart is not just her professional expertise but her dedication to empower readers with the knowledge to thrive in the ever-evolving world of business.","url":"https:\/\/businessyield.com\/author\/prisca\/"}]}},"modified_by":"Stanley Evergreen","jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/businessyield.com\/wp-content\/uploads\/2024\/05\/2148780556.jpg","jetpack_shortlink":"https:\/\/wp.me\/p9I54N-Kmv","gt_translate_keys":[{"key":"link","format":"url"}],"_links":{"self":[{"href":"https:\/\/businessyield.com\/wp-json\/wp\/v2\/posts\/178219"}],"collection":[{"href":"https:\/\/businessyield.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businessyield.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businessyield.com\/wp-json\/wp\/v2\/users\/257"}],"replies":[{"embeddable":true,"href":"https:\/\/businessyield.com\/wp-json\/wp\/v2\/comments?post=178219"}],"version-history":[{"count":15,"href":"https:\/\/businessyield.com\/wp-json\/wp\/v2\/posts\/178219\/revisions"}],"predecessor-version":[{"id":178758,"href":"https:\/\/businessyield.com\/wp-json\/wp\/v2\/posts\/178219\/revisions\/178758"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businessyield.com\/wp-json\/wp\/v2\/media\/178286"}],"wp:attachment":[{"href":"https:\/\/businessyield.com\/wp-json\/wp\/v2\/media?parent=178219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businessyield.com\/wp-json\/wp\/v2\/categories?post=178219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businessyield.com\/wp-json\/wp\/v2\/tags?post=178219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}