4 ms·
Serious question: how can a company recover from that and not go bankrupt? These seem like extraordinary numbers for the last half.
by baby 3y ago
Serious question: how can a company recover from that and not go bankrupt? These seem like extraordinary numbers for the last half.
- seydor 3y agoIt's family owned, no?
- Synaesthesia 3y agoThey still make massive amounts of revenue. They're just spending nearly as much. Companies have come back from worse.
- tedunangst 3y ago5% profits are still profits.
- mrweasel 3y agoI do question those numbers, Samsung is absolutely massive. There's is no way in hell that a decline in smartphone sales have any dramatic effect on their bottom line, let alone a 95% decline in profit. This has to be their smartphone division only, not Samsung the conglomerate. That being said a drop of around $10.5B is still insane and it would destroy just about any other smartphone manufacturer except perhaps Apple. Still it would be a much bigger issue for Apple because they phone are are more central to their overall business. Samsung can transfer funds from other business ventures.
- gruez 3y agoProfits =/= revenue For it to go bankrupt it would need to have negative profits, which means greater 100% drop in profits.
- baby 3y agoThat’s not necessarily true though, the stock price is related to the company’s performance. Stock allows you to hire, pay for stuff, etc.
- hpb42 3y ago> It appears Samsung brought in a profit of 0.67 trillion ($523.5 million) Korean won (KRW), which is a drop in the bucket to the 14.12 trillion KRW ($11.06 billion) it made last year. Their profit was _only_ 500 million dolars, while previously was 11 billion dollars. That's still profit. And I dare to say good profit.
- baby 3y agoIs it though? That’s close to what some startups get as seed raising
- izacus 3y agoWhy would a profitable company go bankrupt?
- baby 3y agoLoss of trust from investors