The difference between $240 mil and $250 mil?

Question

Can you tell a working stiff, like myself, what the difference between $240 million and $250 million? Supposedly my company is looking at losing $10 million in PROFITS and they still call it a loss? Why is the bottom line such a big deal when you are still making an insane amount of money?

First of all, we are not a publicly shared company. We are having cutbacks because we make factory products for Ford Motor company. My whole point to this, as I am not stupid and know what the reasoning behind the financial BS is, is, why do the blue collar guys end up getting screwed even though the company is still making a HUGE PROFIT!! This is ridiculous!! Sorry, I am just on a rant here.

Answer 1

Sheer greed! my friend, sheer greed!

Answer 2

the variations interior the three voltages are strictly the nominal voltage produced interior the gadget. via code the burden calculations for amps of the cord and consequently the breakers are according to 240/a hundred and twenty volts. extensive-unfold line voltage to a house is 220 as much as 240 and a hundred and ten to a hundred and twenty, the a number of voltages make little or no distinction to North American home equipment. The numbers are used decrease from side to side interior the sphere and in basic terms reason some confusion to a amateur. The 208 voltage is derived from a "Y" connection interior the generator and it produces a three section voltage and the sine section relationship from one leg to the different relative to the independent will produce a nominal a hundred and ten/ a hundred and twenty volt from one section to the independent. The 230 volt gadget is a delta configuration and the independent is midsection tapped from one leg of the gadget to floor. To get an intensive information of ways and why the gadget works, you may learn electric producing structures and transformers from an engineering physique of strategies. solid success wish this has helped.

Answer 3

Businesses are valued based upon their earnings, often multiples of their earnings. A company with, say, $10MM lower in net income, would be worth $100MM or so less. Also, there may be concern that the decreases in net income are derived from one particular business unit or segment that may be losing money.

Also, earnings GROWTH is an important metric in valuing companies. When you buy stock in a company, you are basing that decision on its future, not its past or present, and a negative trend in earnings isnt helpful at all.

Answer 4

Publicly traded companies worry about this kind of thing because the directors might be facing a stockholders revolt. Stockholders (owners) want to see rising profits, not less profits.

Answer 5

see here lot of points need to to consider such as inflation rate, cost of capital (interest) etc.
Bottom line is always important because by this u can satisfy the different stake holders (equity holders and others), not only this future plans are also depends on this

Answer 6

It is a loss over anticipated profits, and one that if this trend continues, could eventually bankrupt the company. That's why they are concerned.

Answer 7

It's like walking down the street and having 25 dollars and losing a dollar.

Now you can't buy that $25 cd.

Answer 8

Investor expectations! The price of the stock could decrease causing the total capitalization to decrease.

Answer 9

Large companies look at trends. if they loose 10 mill this year, what about next? Also they have stock holders to answer to.

Answer 10

That's because it is play money... not profits... but "Projected" profits... and it's still considered a loss if not met... it's something the average tax payer can't do... but corps do it each and every year...