Why is net revenue important?
Net revenue gives an idea of how much money a firm takes in, subtracting the cost of goods and services sold. It is linked to net income, another measure on the bank’s income sheet. This information helps investors and analysts understand the performance of JP Morgan. Both are GAAP measures, meaning they conform to the “generally accepted accounting principles” and are therefore reported consistently across firms.
In addition to the financial flows, many analysts look to the financial size, as measured either by total assets or the market capitalization. Also, the number of employees can give have an idea of the physical size of JPMorgan Chase’s operations. These measures together paint a picture of the firm which investors pore over, trying to predict the future value of stock price.