How to Calculate Percentages of Total Revenue

By Motley Fool Staff – Updated Apr 29, 2025 at 11:23 PM

Key Points

Calculating profit as a percentage of revenue shows relative profitability, like Apple's 30.5% vs Fitbit's 20.5%.
Common size income statements allow comparisons across companies and time by standardizing figures.
Tools like Morningstar's toggle feature simplify analyzing income using percentage-based comparisons.

For anyone interested in analyzing and assessing a company's performance, calculating percentages of total revenue -- or using the percentages that have been calculated for you -- can be very useful. In the following article, we'll take a look at how and why an investor calculates percentages of total revenue. If you're interested in learning more about stocks, head over to our broker center to get started!

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A business person calculating profit from revenue. — Image source: Getty Images.

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How to Calculate Revenue Growth for 3 Years

Calculating a company's growth on an annual basis can help determine if its stock will be a good investment.

How to Calculate the Net Worth on Financial Statements

The net worth of a business is also known as its book value or its owners' (stockholders') equity.

How to Calculate Revenue Growth for 3 Years

Calculating a company's growth on an annual basis can help determine if its stock will be a good investment.

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Valuation analysis — Image source: The Securities and Exchange Commission.

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You can see that calculating percentages of total revenue is a powerful analytical technique in the fundamental analysis of companies. In practice, analysts rarely perform the calculations themselves, as any data provider worth its salt will provide those percentages.

For example, the following screen shot shows that Morningstar enables you to toggle between a standard income statement with amounts expressed in dollars -- or rather millions of dollars -- or a common size income statement:

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