A companys profit is 20% of its revenue. If the profit is $24,000, what is the revenue?

Mon, 04 May 2026 21:56:56 +0000

**What Many Investors Are Wonderin’: A Company’s Profit Is Often 20% of Revenue—And Why That Numbers Matter** In today’s fast-moving financial landscape, curious readers across the US are asking: “A company’s profit is 20% of its revenue. If the profit is $24,000, what’s the total revenue?” This simple ratio reflects more than just accounting math—it reveals trends in profitability, investor confidence, and market expectations. Understanding how this calculation works helps investors, professionals, and everyday learners grasp critical business health signals without oversimplifying complex real-world data. The key insight: when profit equals 20% of revenue, revenue can be directly derived by reversing the percentage. If $24,000 represents 20% of total revenue, then total revenue is calculated by dividing $24,000 by 0.20. This yields exactly $120,000—a figure that signals sustainable business performance in many industries. But real-world profitability depends on context, making clarity essential to avoid misinterpretation. ### Why This Ratio Is Gaining Attention in the US