2007-02-25 22:19:21 · 4 answers · asked by knack_3 1 in Business & Finance ➔ Investing
Massive, a business making no profit can't grow!
2007-02-25 22:51:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It is possible for a business to grow without profits, but difficult. They would have to take on debt, or dilute the current stockholders by selling more equity/shares.
The higher the profit margins, the more money they have to return to the shareholders (via dividends or stock buybacks), or to re-invest in the business.
2007-02-26 05:32:05 · answer #2 · answered by Quixotic 3 · 0⤊ 0⤋
except you have income you haven't any longer have been given any thank you to enhance. loss of capital has in all possibility been in charge for extra organisation mess ups than the different single ingredient, different than mismanagement. without income you could't borrow funds considering the fact which you haven't any longer have been given the skill to pay off the loan. except you have income to place decrease back into the organisation you could't improve. For a organisation to enhance and prosper it would make a income. a organisation's income determines no count if a organisation can improve, become stagnant or fail.
2016-12-14 05:57:24 · answer #3 · answered by jeniffer 4 · 0⤊ 0⤋
growth rate g = (Sales x profit margin)/Assets x payout ratio /(1 - (Sales x profit margin/Assets) x payout ratio). From this the relationship is clear isn't it?
2007-02-26 06:28:39 · answer #4 · answered by Mathew C 5 · 0⤊ 0⤋