Net Revenue refers to a company’s total income after excluding all deductions such as taxes, discounts and returns. It is calculated by subtracting all relevant costs of goods sold (COGS) and expenses from total revenue. Net Revenue is a key indicator of overall business performance.
On the other hand, EBITDA stands for earnings before interest, taxes, depreciation and amortization. It measures a company’s operating performance over a given period of time, taking into account the price of goods sold, overhead costs and taxes. Unlike net revenue, EBITDA does not take into account capital investments or financing activities. This measure is often used to compare companies in the same industry.
In short, Net Revenue is an important measure of a company’s success in selling products or services, while EBITDA provides an informative snapshot of operational performance. With this understanding at hand, you’ll be able to better answer questions about your business’s financial health and make better decisions on where to focus your efforts.