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This is a bit meta, but why does everyone refer to a company's revenue instead of profit or margins? Ignoring operating costs, if you manufacture 1M units for 2
by Shikadi 5y ago
This is a bit meta, but why does everyone refer to a company's revenue instead of profit or margins? Ignoring operating costs, if you manufacture 1M units for 20M dollars and sell them for 19M, you have a revenue of 19M despite losing money, so revenue says almost nothing about a company by itself
- colejohnson66 5y agoProbably because it’s the biggest number. If someone wants to make an argument that a company can afford to do thing X, it’s common to just point to the revenue and say, “X has a revenue of $200M a year! Why couldn’t they do it?”