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Amazon has been cash flow positive since 2003. Amazon has a unique negative cash flow cycle where they collected revenue significantly prior to paying their acc
by xkjkls 7y ago
Amazon has been cash flow positive since 2003. Amazon has a unique negative cash flow cycle where they collected revenue significantly prior to paying their accounts payable. As long as they are constantly growing, it is basically like running a business on a credit card.
Tesla is in a completely different situation. Cars require massive upfront investment before their revenue is realized, and given the results just posted, Tesla will most likely post a quarter with declining revenue.
People should stop comparing things to Amazon. Amazon was successful because it was unique.
- __coaxialcabal 7y agoSemantics, but “negative cash conversion cycle”, not “negative cash flow cycle”.
- xkjkls 7y agoYou are correct; I type without proofreading
- deleted 7y ago[deleted]