Formula
Sales Revenue = Number of Units Sold × Price per Unit
Calculation Example
If a company sells 2,000 units at $100 each, Sales Revenue = 2,000 × $100 = $200,000
Data Source
Sales reports, accounting records
Tracking Frequency
Daily, Weekly, Monthly, Quarterly, Annually
Optimal Value
Higher revenue is generally better; should align with business goals.
Minimum Acceptable Value
A decline in revenue signals potential business issues.
Benchmark
Varies widely by industry; e-commerce focuses on volume, B2B on high-value contracts
Recommended Chart Type
Line chart (to track revenue trends), Bar chart (to compare product performance)
How It Appears in Reports
Presented in financial statements and sales reports to evaluate business performance.
Why Is This KPI Important?
Indicates business growth and market demand for products/services.
Typical Problems and Limitations
Revenue alone does not indicate profitability; must be analyzed with margins.
Actions for Poor Results
Improve marketing strategies, optimize pricing, increase sales channels.
Related KPIs
Net Profit Margin, Gross Profit Margin, Customer Acquisition Cost (CAC)
Real-Life Examples
A SaaS company increased revenue by 20% by introducing a new pricing tier.
Most Common Mistakes
Focusing on revenue growth without managing costs and profit margins.
