2 ms·
I think you don't know what "profits" are, i.e. don't know accounting. CAPEX is written down via depreciation charges over many years. I.e. if you buy somethin
by H8crilA 7y ago
I think you don't know what "profits" are, i.e. don't know accounting.
CAPEX is written down via depreciation charges over many years. I.e. if you buy something for $1M, and it has an accounting life of 10 years, you book $100k losses per year.
What you're thinking about is called "cash flow", not "profits".
- ksdale 7y agoIs this not basically what Amazon did? Massive capital expenditures with cascading depreciation that wiped out profits while increasing cash flow until they got to a certain size and decreased CAPEX and recognized profits?