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Yeah, there is a lot of detail, and I don't have a perfect formula. My point was that OP equated revenue with profit, which is clearly and substantially wrong.
by BurningFrog 4y ago
Yeah, there is a lot of detail, and I don't have a perfect formula.
My point was that OP equated revenue with profit, which is clearly and substantially wrong.
- AlbertCory 4y agoOP was me, wasn't it? I said "It's usually 1-2% of revenue."
- BurningFrog 4y agoOh, I didn't realize you're OP :) Yeah, I read that as "of all the money they could spend these greedy bastards only spend 1-2% on R&D", but in reality their "disposable income" is much less the revenue. Did I miss your point in some way?
- AlbertCory 4y agoI think you read "revenue" as "disposable income." R&D as a percent of revenue is a pretty common metric in the investment world. It's not perfect, like most accounting metrics. Maybe there are people who measure R&D as a percent of (revenue - COGS) but I haven't seen that.
- BurningFrog 4y agoThat's more than I know, but you're probably right. Perhaps one day I'll revolutionize accounting with my ideas, but for now I'll accept this :)