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YOVIDAI Investing Companion
beginner 3 min read

Revenue vs Profit — the difference matters

Revenue is what comes in. Profit is what stays after all the bills.

Revenue (also called top-line or turnover) is the total money the company received from customers in a period.

Profit (or net income, bottom-line) is what's left after paying employees, suppliers, interest, taxes and everything else.

A company can grow revenue quickly but still lose money — think of a startup burning cash to acquire users.

Analogy: a tea stall makes ₹5,000/day (revenue). After paying for milk, sugar, cups, LPG, rent and helper's salary, ₹800 is left — that's profit. Big revenue doesn't mean much if profit is thin.

Terms you'll see
  • EBITDAProfit before interest, tax, depreciation, amortisation — a stripped-down 'core' profit.
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