Revenue
Overview
In financial modeling, Revenue is the starting point for projecting a company’s financial performance. It represents the total income generated from the sale of goods or services before deducting any expenses.
Because revenue drives many other line items in the model (e.g., cost of sales, operating expenses, working capital), accurately forecasting it is critical for producing realistic financial projections.
This item flows into: - Revenue Schedule (Standalone) - Income Statement → Revenue
Model Flow
[NTD: Add visual flow diagram of revenue flowing into cost structure, working capital, etc.]
Adding a module
To add or edit the Revenue item in NorthStella, select the following node in the Blueprint window:
- Income Statement → Revenue
Editable Properties
Name
Default: Revenue
Flows through the Revenue Schedule, Income Statement, and driver formulas throughout the model.
See Display Name for more details.
Forecasting Method
Default: Growth Rate
Available Methods:
- Hardcoded Input
- Nil
- Last Historical
- Growth Rate (recommended)
- Ratio
Use of a Growth Rate is recommended for high-level planning. More granular revenue models (e.g., unit price × volume) can be implemented using sub-schedules if required.
Non-Cash
Enable this setting if the revenue item is non-cash (e.g., barter revenue, accounting reclassifications).
See Non-Cash for more details.
Non-Taxable
Enable if the revenue should not be subject to taxation (e.g., grants, non-operating income).
See Non-Taxable for more details.
Additional Materials
See Revenue 101 page for more details.