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Can we at least agree that any profits above zero are actually profits? And the question of just how profitable is a different financial metric?
by hef19898 4y ago
Can we at least agree that any profits above zero are actually profits? And the question of just how profitable is a different financial metric?
- gizmo 4y agoNo? Because if you need tons of capital to make a minuscule profit your company is worth nothing. (A company has to outperform at least the interest people can get on bonds plus some equity premium.) Amazon could make a significant profit, if Bezos wanted. But that’s a different question.
- hef19898 4y agoThat'll be Return-on-Capital.