2) Fundamental Analysis
Many people confuse revenue and profit. 'My shop's turnover is $50,000!' -- that's revenue. But after subtracting ingredients, salaries, rent, electricity... how much actually goes into your pocket? That's profit. Let's break down the difference.
Revenue is the total money coming into a company from selling products/services. Profit is the money left after subtracting all costs. Revenue is 'gross money,' profit is 'clean money.' A company can have trillions in revenue but zero profit -- or even negative.
You sell iced tea outside a school. You sell 100 cups/day x Rp5,000 = Rp500,000. That's your REVENUE. But you spend Rp200,000 on ingredients, Rp50,000 on rent, Rp50,000 on misc. So your PROFIT is only Rp200,000. When someone says 'my business does billions,' ask: is that revenue or profit? Huge difference!
GOTO (GoTo Group) is an interesting example. Revenue keeps growing as Gojek and Tokopedia users increase, but profit is still negative (losses) due to massive operational costs. Conversely, UNVR (Unilever Indonesia) has stable revenue AND consistently high profit margins because its products (Lifebuoy, Rinso, etc.) sell with good margins.
After understanding this concept, apply it in tools so decisions become more objective and measurable.
Open Profit / Loss CalculatorCan a company have revenue but no profit?
Absolutely! This often happens with startups or aggressively expanding companies. GOTO, for example, has billions in revenue but still posts losses due to massive customer acquisition and operational costs. The question: when will they turn profitable?
Which is more important, revenue or profit?
Both matter, but context differs. For mature companies (BBCA, UNVR), profit matters more -- they must generate returns for shareholders. For growth companies (startups), revenue growth may temporarily matter more, as long as there's a clear path to profitability.
