Revenue
Short definition
Revenue is the consideration accrued when performance obligations are satisfied (IFRS 15). It is not collection; returns, discounts and agency presentation change net sales.
Detailed explanation
Gross billings and net revenue differ: discounts, rebates, returns and some agent shares reduce net sales. On credit terms, revenue is today and cash arrives DSO days later. Contract assets and billing timing shift accrual.
Without a volume–price–FX split, “sales grew” misleads. Consignment, tolling and agency models may present gross or net; margins and DSO follow that choice.
Why it matters for the CFO
Budget, capacity, working capital and valuation lock onto the sales assumption. Revenue quality — recurrence, price power, collectability — is the CFO’s first filter; one-off project billings are not run-rate.
How to read it
If revenue growth stretches DSO, growth is consuming cash. A channel shift can inflate billings while net revenue stalls. There is no universal “good growth”; read it with margin, CCC and capacity.
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.