2 ms·
It's talking about revenue not profit
by DoesntMatter22 2mo ago
It's talking about revenue not profit
- phil21 2mo agoNet revenue generally means profit. Although I believe this also includes unrealized gains. Basically profit from trading before they pay for salaries and office rent and all that jazz.
- master_crab 2mo agoNo net revenue is still the top line number (just minus some things like allowances or some other artifact or exception). Profit is the bottom line.
- derdi 2mo agoBut then what does it mean when the FT writes that that "revenue" number already accounts for the 15 billion losses? That the FT doesn't use these terms correctly either, and we can't really know what its reporting means?
- master_crab 2mo agoThat’s the correct usage. Revenue includes gains and losses. Profit will take that number and subtract out the operational costs (salaries, market data subs, etc).
- DoesntMatter22 2mo agoNot profit then at all is it? As I said
- phil21 2mo agoIt’s trading profit. No one is counting their gains from a trade while including their rent into it. It’s a much easier to understand metric when you are discussing losses on a trade. No one is calculating losses including salaries. It means Jane Street is still highly profitable in trades this year despite making a bad bet. If they have overhead that eclipses that, that is an entirely different metric.