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Profit is an easier number to manipulate than revenue through expenses and liability. E.g., by increasing expenses to executive salaries and by investing huge s
by arghwhat 3y ago
Profit is an easier number to manipulate than revenue through expenses and liability. E.g., by increasing expenses to executive salaries and by investing huge sums in growth projects or new strategies.
For large companies, particularly those where investors prioritize growth, cash flow is often more interesting than profit.
- bitshiftfaced 3y agoOh I agree that if you're going to fee based on something, revenue is better than profit. My post wasn't trying to say otherwise. It's just that I don't believe it makes sense to gauge how fast companies pay off the fee in terms of revenue, such as was done in the article.