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A comment on Was corporate profit growth a bubble inflated by "financial engineering"?. Parent comment

Re:Was corporate profit growth a bubble inflated by "financi... by H8crilA on Saturday March 28, 2020 @06:52AM (#22710377)
I think you don't know what "profits" are, i.e. don't know accounting.

CAPEX is written down via depreciation charges over many years. I.e. if you buy something for $1M, and it has an accounting life of 10 years, you book $100k losses per year.

What you're thinking about is called "cash flow", not "profits".

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Re:Was corporate profit growth a bubble inflated by "financi... by ksdale on Tuesday March 31, 2020 @12:59PM (#22739621)
Is this not basically what Amazon did? Massive capital expenditures with cascading depreciation that wiped out profits while increasing cash flow until they got to a certain size and decreased CAPEX and recognized profits?
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