Glossary

Revenue rollforward

Business reporting

What is a revenue rollforward?

A revenue rollforward is a financial statement or report that provides a detailed breakdown of how a company's revenue has changed or "rolled forward" from one period to another, typically from one fiscal year to the next. It is a useful tool for stakeholders, including investors and analysts, to understand the factors contributing to changes in a company's revenue over time.

Here's a breakdown of the key components typically included in a revenue rollforward:

  1. Beginning revenue: This represents the starting point of the analysis, usually the revenue from the previous fiscal year.

  2. Revenue increases: This section includes all the sources of revenue growth during the period being analyzed. It can encompass various factors, such as increased sales volumes, higher prices, new product launches, or acquisitions that contributed to revenue growth.

  3. Revenue decreases: Conversely, this section accounts for any factors that led to a decrease in revenue during the period. This could include factors like lower sales volumes, reduced pricing, or divestitures.

  4. Foreign exchange (FX) impact: If a company operates in multiple countries, changes in currency exchange rates can impact its revenue when translated into the reporting currency. This section accounts for those currency-related changes.

  5. Other revenue adjustments: This category covers any other adjustments that may affect revenue but don't fit into the categories mentioned above. It could include accounting changes, revenue recognition adjustments, or any other relevant factors.

  6. Ending revenue: This is the total revenue for the period being analyzed, which is the sum of the beginning revenue and the net impact of all the changes and adjustments mentioned above.

A revenue rollforward helps stakeholders understand the dynamics behind revenue changes and provides transparency into a company's performance. It can be a valuable tool for assessing the company's growth strategy, identifying trends, and making informed investment decisions.