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What would be the justification for using profit rather than revenue? For years Amazon was one of the biggest companies in the world while never making a profi
by sebzim4500 3y ago
What would be the justification for using profit rather than revenue?
For years Amazon was one of the biggest companies in the world while never making a profit. If it engaged in wrongdoing should they have been given a fine of 0$ (or negative I guess) since they weren't profitable?
- jddj 3y agoI don't think the parent is suggesting that they be fined based on their profit. They're saying it's unusual to use revenue to talk about how easily a company could pay a fine, given that (cashflow cleverness aside) your revenue doesn't determine your ability to pay for arbitary extras. In reality neither does net profit, as nonessentials and comp tend to consume just enough to leave a profitability which keeps shareholders happy.