Do Your Profits Pay for all Your Overhead?

ArticleFame.com | Do Your Profits Pay for all Your Overhead?: "Business people can fool themselves often about what their profits really are. Profits are not only cash available that you can spend as salary and reinvest in a business. Profits also have to pay all taxes, fees, and service all loans outstanding. “Goodwill” earnings through the development of a brand, internet site or distribution network can warrant years of investment in companies that on the books have losses year after year. Then the owners sell the company for some huge billion dollar figure and make a big, in the pocket, profit. When looking at a company’s profit and loss statements, we first look at its top line growth. Is it making more gross sales? Is the profit margin increasing or decreasing? Is a decreasing profit margin compensated by a larger volume of sales? "