But it may be way more profitable. Because profitability is not the amount of dollars earned, but the ratio of earned dollars per invested dollar. Also, it mak

But it may be way more profitable. Because profitability is not the amount of dollars earned, but the ratio of earned dollars per invested dollar. Also, it makes sense for most healthy companies to borrow money and pay out a stock dividend at the same time. You need to pay interest on the borrowed money. But that interest can be deduced from the taxes you'd have to pay otherwise. The trick is to find the correct ratio. The earnings to invest ratio goes up and everyone is happy.