Is revenue and yield exactly the same?
A little context:
After the big loss last year it looks like the company is going to make some revenue/yield this year. (invented this sentence myself)
Thanks in advance!
I would say "..... the company will see revenue this year."
Anyway, I came across this site:
http://www.asean-hotelworks.com/The%...anagement.html
where I found an interesting explanation about revenue vs yield.
Regards.
Last edited by Mylanguageclick; 29-Aug-2011 at 20:15.
I recommend you exercise caution when using these words. Depending on context, they may begin to look to a reader as synonomous with Profit, yet they are not always so. A business may very well have lots of Yield and/or Revenue, but make little or no Profit.
Bottom Line: If you mean Profit, then say Profit or be careful to define what you mean if you want to substitute Yield.
*Not an Economist or Accountant.*
Yield is often expressed as a percentage. It's related to the amount of money used to make the profit.
1. Let's take a company that has a business capital of 1 million dollars, and they make an income of $100,000 in a year, with costs of $40,000.
Their revenue is $100,000; their gross profit is $60,000; the yield [before income tax] is 60,000/1,000,000 = 6%.
2. If I have 1,000 shares in a company, and the company pays a dividend of 10c/share, I receive a revenue of $100. The % yield would depend on the price of the shares at that time. If shares were at $2.50, my yield is 100/2500 = 4%
At least that's one definition of yield; there are others.
Also see here.
http://en.wikipedia.org/wiki/Yield_(finance)