• sunbeam60@feddit.uk
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      19 hours ago

      Not just that - it confuses several financial terms.

      CAPEX is one time spend. Revenue is recurring. Take Microsoft, as just one example: They are stuffed with cash abroad - they only bring it home when there’s a moratorium; until then it just sits and waits. It’s much cheaper for Microsoft to spend it outside the US than to take it home - CAPEX that can happen outside the US is often welcomed by the big stock owners as it puts the money to work.

      Revenue happens every year. It’s like saying “is this banana stand profitable?” and then answering by saying “well the shed cost 10 dollars and the bananas sell for 5c”. You need more information to understand whether those are good or bad numbers.

      And I know - there’s always money in the banana stand!