Ancillary Revenue

DEFINITION of 'Ancillary Revenue'

Revenue generated from goods or services that differ from or enhance the main services or product lines of a company. By introducing new products and services or using existing products to branch into new markets, companies create additional opportunities for growth.

BREAKING DOWN 'Ancillary Revenue'

Most companies have some form of ancillary revenue. These revenues can vary from car washes at gas stations to advertisements placed on jets. In some cases, what begins as ancillary revenue can become the main source of revenue - for example, when food and beverage sales at gas stations surpassed gasoline revenues.

RELATED TERMS
  1. Revenue

    The amount of money that a company actually receives during a ...
  2. Revenue Recognition

    An accounting principle under generally accepted accounting principles ...
  3. Cost Of Revenue

    The total cost of manufacturing and delivering a product or service. ...
  4. Operating Revenue

    Income derived from sources related to a company's everyday business ...
  5. Ancillary Benefits

    A secondary type of health insurance coverage that covers miscellaneous ...
  6. Unearned Revenue

    When an individual or company receives money for a service or ...
Related Articles
  1. Investing

    What's Marginal Revenue?

    In microeconomics, marginal revenue is the additional revenue generated by increasing sales revenue by one unit. Another way of saying this is that the marginal revenue is the revenue generated ...
  2. Investing

    What Is The Difference Between Revenue And Income?

    The average person uses revenue and income in interchangeable ways. But these terms refer to very specific, and different, concepts.
  3. Investing

    S&P 500 Index: A Revenue Case Study

    Discover the breakdown of aggregate total revenue of S&P 500 companies, including how much revenue is earned by country, industry and geographic location.
  4. Managing Wealth

    Revenue Analyst: Career Path & Qualifications

    Learn more about the duties of a revenue analyst and the qualifications needed for the position, along with the career path for these professionals.
  5. Markets

    What is Unearned Revenue?

    Unearned revenue can be thought of as a "pre-payment" for goods or services which a person or company is expected to produce to the purchaser.
  6. Entrepreneurship & Small Business

    How Do Companies Calculate Revenue?

    Revenue is the money a company receives in exchange for its goods and services.
  7. Markets

    S&P 1500 Index: A Revenue Case Study

    Learn what comprises the S&P 1500 and how analysts use revenue trends to benchmark against the performance of a portfolio or single stock investment.
  8. Financial Advisor

    Steps For Adding New Services To Your Finance Business

    Advisors who seek to add additional lines of business to their practices need to carefully consider all the factors involved.
  9. Managing Wealth

    Asset Turnover Ratio

    Investopedia explains: The asset turnover ratio is a measure of a company's ability to use its assets to generate sales or revenue, and is a calculation of the amount of sales or revenue generated ...
  10. Managing Wealth

    World's Top 10 Trading Companies

    Which are the top trading firms of the world? Here is the list of the ones with highest trading revenue.
RELATED FAQS
  1. What types of revenue are taxable?

    Learn about all the various types of taxable corporate revenue and how different revenues are designated and differentiated ... Read Answer >>
  2. Why do companies stop trying to increase marginal revenue?

    Learn what marginal revenue seeks to measure and understand why a company would want to stop increasing its marginal revenue ... Read Answer >>
  3. What is the difference between earnings and revenue?

    Understand how a company makes revenue and how it makes earnings. Learn the difference between revenue and earnings and how ... Read Answer >>
  4. How does revenue sharing work in practice?

    Take a look at some of the several different iterations of revenue sharing, the practice of distributing operating profits ... Read Answer >>
  5. What types of companies tend to have the most deferred revenue?

    Learn what types of companies tend to have the highest levels of deferred revenue. Understand when deferred revenue is recognized ... Read Answer >>
  6. How is deferred revenue treated under accrual accounting?

    Learn deferred revenue and its treatment under accrual accounting and why various revenue recognition methods result in different ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center