4 ms·

Is it just me or is it meaningless that profits are down by a certain percentage? Suppose a company is just about breaking even. Last quarter it made $1,000,000

Is it just me or is it meaningless that profits are down by a certain percentage? Suppose a company is just about breaking even. Last quarter it made $1,000,000 (of a revenue of $100M). This quarter it makes $1,000. Profits fell 99.9%. So what?

jarek 15y ago
It no longer made as much money to be redistributed to shareholders or invested in future growth. To be sure, it depends on why the difference between expenses and revenue rose by $999k.