3 ms·
The accounting is not what matters. What matters is using your brain to to figure out if a fine is actually meaningful. Comparing to revenue is a stupid way to
by fauxpause_ 3y ago
The accounting is not what matters. What matters is using your brain to to figure out if a fine is actually meaningful.
Comparing to revenue is a stupid way to think about things. Profit is the incentive to conduct business. Not revenue. And not global profit, but in this case Ireland/EU profits only, because that is the location fining them.
People are so eager. Every. Single. Time. To say that a fine does not matter even if it clearly outpaces multiple years of profits for the area given.
- Spivak 3y ago> Comparing to revenue is a stupid way to think about things. Profit is the incentive to conduct business Because it is and it isn't. Companies can make people filthy rich while not making a single dollar of profit thanks to the stock market where the price does grow, broadly, in terms of revenue.
- fauxpause_ 3y agoYou’re right in that it ought to be compared to the scale of profits, not a percentage, as many run on a loss during growth. But profit is still what matters. Including the promise of future profits. Talking of the future doesn’t help much because both numbers will change. And punishing a company based on its future state is… not possible