Re:Amazon's minimum order size for free shipping is now $35
by 001sky on Wednesday October 23, 2013 @02:32PM
(#6600664)
News flash: most technology companies...
While its true that lack of profits limit dividends, return on invested capital is measured using other metrics. So the question of dividends "not a news flash", in the sense that it's not central to the topic.
The question of profits, though remains. Three possibilities:
(1) Tax losses & Tax Shields (avoidable, but cash positive)
(2) Obfuscation of earnings (avoidable, but to deter entry)
(3) Stategic operating losses (unavoidable)
_____________
(4) Incompetence (or actual lack of business leverage).
Since no one is really arguing (4) the question is more which of 1-3 is relevant? I don't think avoiding dividends would be a central consideration, but YMMV.
While its true that lack of profits limit dividends, return on invested capital is measured using other metrics. So the question of dividends "not a news flash", in the sense that it's not central to the topic.
The question of profits, though remains. Three possibilities:
(1) Tax losses & Tax Shields (avoidable, but cash positive)
(2) Obfuscation of earnings (avoidable, but to deter entry)
(3) Stategic operating losses (unavoidable)
_____________
(4) Incompetence (or actual lack of business leverage).
Since no one is really arguing (4) the question is more which of 1-3 is relevant? I don't think avoiding dividends would be a central consideration, but YMMV.