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HelloI read about operating profit, EBITDA and other types of profit.What are the differences of all these and how do we assess a company performance?
Quote from: scientizscht on 01/07/2018 12:06:06HelloI read about operating profit, EBITDA and other types of profit.What are the differences of all these and how do we assess a company performance?Wouldn't your question answer be based on the variation of type of company and whether it was an established company or a start up company?
Quote from: Thebox on 01/07/2018 13:51:28Quote from: scientizscht on 01/07/2018 12:06:06HelloI read about operating profit, EBITDA and other types of profit.What are the differences of all these and how do we assess a company performance?Wouldn't your question answer be based on the variation of type of company and whether it was an established company or a start up company?Not sure, don't think so
It all depends on what you are looking for. As a potential employee, you might consider that a company with a low profit/earnings ratio would be good to work for as they spend lots of their income on wages, but as an investor you would have to look carefully at the maturity of the enterprise: a startup may lose money for several years until the product hits the market and you make a fortune, but an established business with a low PER isn't going to repay your investment.I started a niche company as a small cash cow, but investors saw it as a capital growth opportunity - and we still argue about it!Share price history is often quoted as an indicator, but that is based largely on how prospective investors think the company is likely to perform rather than actual sales and costs.It is logical to look at the actual product: is it unique, well protected, and secure against failure of suppliers? Even so, that doesn't guarantee that anyone will buy it! On the other hand, the US Academy of Sciences told the Wright Brothers "there is no conceivable military use for the airplane" and a UK government inquiry concluded in the 1950s that "about five computers will be sufficient for all the country's needs".My grandmother used to say that "whatever happens, people need to eat and drink", but whilst her fish shop provided a comfortable living for the family, the pub next door went bust. The answer to the fundamental question of capitalism is "nobody knows".
I would like a big fish shop like Harry Ramsden , that must be a profitable business and have enough food for lots of people .
Quote from: Thebox on 02/07/2018 23:11:43I would like a big fish shop like Harry Ramsden , that must be a profitable business and have enough food for lots of people . Harry Ramsden began as a shack in Yorkshire. Got a huge local reputation for quality, persuaded to open a branch in a pub courtyard, and was bought by the brewery. Now in every major airport and railway station. Classic story of how a good small business becomes a good big business - by being good, and saying yes to a major investor with a real interest in the product!