What is the meaning / definition of Net Revenue in the hospitality industry?
The term Net Revenue, also known as net income can be found at the bottom of every income statement. Net means free from all deductions and revenue refers to the income generated by organisation. To calculate Net Revenue, first add all of the expenses listed on your income statement such as materials, fees, rent, transportation, office supplies, utilities and taxes together. Thereafter, subtract the sum of these expenses from the total revenue to find your net income.
Formula:
Net Revenue = Total Revenue – Operating Cost, Expenses & Tax
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