2014-04-29, 07:06 PM
Niernen Wrote:I am aware of that. But it still shows some trends and can be used to determine if a company is doing well or not.
Looking at revenue of one company year to year and not comparing anything else is largely useless. If the rate expenses are growing at exceeds the rate revenues are growing at, you're going to run into problems if the trend continues, for example.
"oh no my expenses are going up SHUT DOWN EVERYTHING"
You can't make this judgment just by looking at expenses, so why would you say times are good just by looking at an increase in revenues?

