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What is capital power income?

Published in Company Financials 2 mins read

While "income" generally refers to a company's net profit after all expenses, the specific financial information available for Capital Power primarily details its revenue, which represents the total sales generated from its primary operations.

Capital Power's Revenue Performance

Capital Power Corporation (CPX.TO) is a North American power producer with a focus on sustainable energy. Its revenue reflects the total value of electricity and other services sold over a period. Understanding a company's revenue is crucial as it's the starting point for calculating profitability.

According to recent financial reports, Capital Power has demonstrated significant revenue growth:

Metric Amount (USD) Notes
Current Revenue (TTM) $2.79 Billion Trailing Twelve Months
Revenue (2023) $3.09 Billion Increased from previous year
Revenue (2022) $2.11 Billion Base for 2023's increase

The increase from $2.11 Billion in 2022 to $3.09 Billion in 2023 indicates a strong growth trajectory in their sales, reflecting either increased volume of energy sold, higher energy prices, or a combination of both.

Understanding Revenue vs. Income

It is important to distinguish between revenue and income (often referred to as net income or profit):

  • Revenue (Sales): This is the total amount of money a company earns from its primary business activities before any expenses are deducted. It's the "top line" of a company's financial statements.
  • Income (Net Income/Profit): This is the "bottom line," representing the money a company has left after deducting all expenses, including:
    • Cost of Goods Sold (COGS) or direct costs of operations
    • Operating expenses (salaries, rent, utilities, marketing)
    • Interest expenses
    • Taxes

Therefore, while Capital Power's revenue figures provide insight into its operational scale and sales success, its actual "income" would be a lower figure, reflecting its profitability after accounting for all costs associated with generating that revenue. For a deeper dive into these financial terms, you can explore resources like Investopedia's explanation of revenue vs. net income.