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0 pointsquaunaut12y ago0 comments

Money not spent is money that isn't working for you, but instead is just sitting in reserve, at best accruing interest. Amazon is betting it can get a much higher return, and so far, has been right.

0 comments

epa12y ago

"profit" and "money" are two very different things.

"profit" is how much you are making at the end of the year, this is to be reinvested if you are efficient (as you suggest is good, i agree)

"money" is the what is sitting in the bank, not being utilized.

Would you say that a company who is breaking even is utilizing their cash properly? no, they don't have any cash to utilize, therefore profit and cash are different things.

quaunautOP12y ago

...or they could have just already utilized the cash, which is what Amazon is doing?

epa12y ago

Capital assets are not fully expensed in the year they are bought.

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0 pointsquaunaut12y ago0 comments

Money not spent is money that isn't working for you, but instead is just sitting in reserve, at best accruing interest. Amazon is betting it can get a much higher return, and so far, has been right.

0 comments

epa12y ago

"profit" and "money" are two very different things.

"profit" is how much you are making at the end of the year, this is to be reinvested if you are efficient (as you suggest is good, i agree)

"money" is the what is sitting in the bank, not being utilized.

Would you say that a company who is breaking even is utilizing their cash properly? no, they don't have any cash to utilize, therefore profit and cash are different things.

quaunautOP12y ago

...or they could have just already utilized the cash, which is what Amazon is doing?

epa12y ago

Capital assets are not fully expensed in the year they are bought.

j / k navigate · click thread line to collapse