4 ms·
Profit is not necessarily the same thing as net income. Net income is Revenue minus Cost of Goods Sold. Overall profit includes capex. If you use the 'net incom
by darawk 8y ago
Profit is not necessarily the same thing as net income. Net income is Revenue minus Cost of Goods Sold. Overall profit includes capex. If you use the 'net income' definition, then yes, he makes that point.
- aslkdjaslkdj1 8y agoYou are thinking of gross income. Net income includes depreciation for assets acquired under capital expenses.
- darawk 8y agoYou're right. Gross income is the correct measure. Then his paper uses the wrong measure too.