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By that logic, any company not yet bankrupt could be called profitable. Profit is a reflection of past performance, not future potential.
by ckastner 9y ago
By that logic, any company not yet bankrupt could be called profitable.
Profit is a reflection of past performance, not future potential.
- jblow 9y agoBy this metric just about every single new business is a failure, including 100% of YC startups. At that point is it a useful distinction to draw?
- ckastner 9y agoYour conclusion is wrong. A profit is a realized financial gain. In a given period, income surpassed expenses. A business failure is a business that has failed, it has ended. A lack of profit can lead to failure, but in no way implies it.