Profits are no longer important.

[timosman]

It seems noone cares about profits anymore, it is all about revenue, e.g FORTUNE 500 is based on revenue. It seems the reality has been distorted by the availability of cheap credit.

 

[devil21]

Revenue = Control

Control = Agenda implementing

That's all that matters right now and why profits don't matter. As long as the revenues are there, social engineering and control mechanisms in the hands of the corporations can move forward. Insiders have revealed in the past that controlling the multi-national corporations is much more important to Agenda implementation than controlling governments themselves because it's easier to control the corporations, then use the corporations to bend the will of governments toward the goals of the corporations.

 

[euphemia]

As long as money is coming in, bills can be paid.

 

[timosman]

Revenue = Control

Control = Agenda implementing

That's all that matters right now and why profits don't matter. As long as the revenues are there, social engineering and control mechanisms in the hands of the corporations can move forward. Insiders have revealed in the past that controlling the multi-national corporations is much more important to Agenda implementation than controlling governments themselves because it's easier to control the corporations, then use the corporations to bend the will of governments toward the goals of the corporations.

All the while claiming the major objective of a corporation is the shareholder profit. How do you reconcile this?

 

[Ronin Truth]

Just too silly to further respond.

 

[r3volution 3.0]

Mises was once asked what was the defining feature of a market economy, and responded "a stock exchange."

(crucial because it represents an efficient allocation of capital goods)

There is no longer a functioning stock exchange in this country, so...

 

[timosman]

Just too silly to further respond.

???

 

[P3ter_Griffin]

Anecdotal but, I saw when precious metal prices came crashing down a few of the miners(I didn't look at many) were cutting cost by getting rid of contractors... but were still running damn near the same throughput and were still recovering the same amount of metals per ton of material. From my perspective revenues are cherished because they can be used as a pass-through to profit privately held companies. The good ol' circle-jerk, shareholders be damned.

 

[angelatc]

It seems noone cares about profits anymore, it is all about revenue, e.g FORTUNE 500 is based on revenue. It seems the reality has been distorted by the availability of cheap credit.

Thats wrong. They ranked by revenue but that's only one of the criteria that's used to determine inclusion.

 

[Ronin Truth]

Ask the stockholders (owners).

 

[DamianTV]

It seems noone cares about profits anymore, it is all about revenue, e.g FORTUNE 500 is based on revenue. It seems the reality has been distorted by the availability of cheap credit.

Profits are actually illusory gains too many times. And those people are taxed on those increases.

Say a person owns stock in a company that goes up in value by 5%. Those people are taxed on the 5% increase, but inflation is never factored in. Even if inflation were 10 or say 20%, people would still be taxed by the entire 5% when they actually lost money. Not in quantity, but in purchasing power.

 

[stuntman stoll]

Future profit is what it's all about. Plowing money back into the business wipes out profit, but usually means higher future profit. Taking profit now means less investing for future profit. Growing revenue usually means a growing business and more likely higher future profit.

 

[oyarde]

Future profit is what it's all about. Plowing money back into the business wipes out profit, but usually means higher future profit. Taking profit now means less investing for future profit. Growing revenue usually means a growing business and more likely higher future profit.

The better places do both at the same time .

 

[devil21]

Future profit is what it's all about. Plowing money back into the business wipes out profit, but usually means higher future profit. Taking profit now means less investing for future profit. Growing revenue usually means a growing business and more likely higher future profit.

I don't think that what the OP was asking. The OP was about why profits don't matter and aren't even reported. You have to dig through the financials of the company to find out if it is even profitable. It's all about revenue now and why? Amazon is a great example of this phenomenon.

 

[timosman]

I don't think that what the OP was asking. The OP was about why profits don't matter and aren't even reported. You have to dig through the financials of the company to find our if it is even profitable. It's all about revenue now and why? Amazon is a great example of this phenomenon.

Remember P/E - https://en.wikipedia.org/wiki/Price–earnings_ratio ?

 

[Madison320]

It seems noone cares about profits anymore, it is all about revenue, e.g FORTUNE 500 is based on revenue. It seems the reality has been distorted by the availability of cheap credit.

I agree. Anyone can generate revenue. Just sell dollars for 90 cents a piece and your revenues will soar.

 

[osan]

As long as ENOUGH money is coming in, bills can be paid.

Fixed that fer'ye.

 

[osan]

Profits are actually illusory gains too many times. And those people are taxed on those increases.

Illusory? How do you reason? "Profit" has a very specific definition where business is concerned:

What is 'Profit'

Profit is a financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business's owners, who may or may not decide to spend it on the business.


Read more: Profit Definition | Investopedia http://www.investopedia.com/terms/p/profit.asp#ixzz4FkQKUP86
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Given this widely accepted working definition, how do you come to the assessment that profits are "illusory"?

Say a person owns stock in a company that goes up in value by 5%. Those people are taxed on the 5% increase, but inflation is never factored in.

What do you mean? There are all manner of considerations and distinctions between "profit" and "real profit". These distinctions are central to all manner of business considerations, as well as those economic.

Even if inflation were 10 or say 20%, people would still be taxed by the entire 5% when they actually lost money.

Only by people who do not have the aid and benefit of GOOD accountants.

Not in quantity, but in purchasing power.

This is what is often referred to as "economic loss". To be clear:

What is 'Economic Profit (Or Loss)'

An economic profit or loss is the difference between the revenue received from the sale of an output and the opportunity cost of the inputs used. In calculating economic profit, opportunity costs are deducted from revenues earned. Opportunity costs are the alternative returns foregone by using the chosen inputs, and as a result, a person can have a significant accounting profit with little to no economic profit.


Read more: Economic Profit (Or Loss) Definition | Investopedia http://www.investopedia.com/terms/e/economicprofit.asp#ixzz4FkRVUx5d

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[osan]

It seems noone cares about profits anymore, it is all about revenue, e.g FORTUNE 500 is based on revenue. It seems the reality has been distorted by the availability of cheap credit.

I care about profits. To say "it" is all about revenue seems perplexing as I cannot quite make out what that is supposed to mean, exactly. Total revenue is a nice thing to bump upward, but it's the ratios that count... return on assets (ROA), return on investments (ROI, often confused with ROA), and return on equity (ROE). What counts is how much my invested dollar returns to me in profit. To say profit doesn't matter is nonsensical, unless you are running a non-profit organization, in which case gross revenue would still not be the figure of central significance, but rather again a ratio that would signify the overall efficiency of the operation. Since I've not been involved with non-profits, I would not know what that ratio would be called, though it may be ROA. Anyone?

 

[devil21]

Hell, even revenues don't matter anymore. It's all about the PPT/ESF and CBs.

The stock markets in a nutshell:

GOPRO REVENUES DOWN 47%, STOCK UP 6%
http://www.businessinsider.com/gopr...-but-shares-are-up-6-percent-2016-7?r=UK&IR=T

CNBC can't say enough about how great "sit-on-ass" companies like Facebook and Google (also big intel gathering companies, of course) are doing though.