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On the other hand, revenues can mean nothing as well, since profits are what count, and huge revenues do not always translate, and could be a sign of a spending
by megablast 15y ago
On the other hand, revenues can mean nothing as well, since profits are what count, and huge revenues do not always translate, and could be a sign of a spending problem.
- gujk 15y agoIt can be hard to tease out from the fancy accounting, but marginal profit (that is presumably sustainable) should be distinguished from new investment (which can be stopped if needed) and not just added together to get a profit number. That said, the buck should eventually stop at Free Cash Flow to prove shareholder value, which is then paid as dividend or invested sensibly.