Traditionally one is said to make profit when the selling price is higher than the buying price. I that that’s how profit is computed globally.
Well, I was wrong. In the US, Business is said to make profit when this year’s sales supercedes last year, and loss is when a business fails to beat last year’s sales.
How do Kenyan Businesses compute their numbers, akina Uchumi, Nakumatt, Safaricom and the rest.
Nse listed companies use the same formula
there is corporate profit and unit profit (my terms)
Unless you’ve come up with your own new GAAPs
Tell them Revenue is not equal to profit
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Will I be right to say Recession, is when X number of companies fail to beat last year’s numbers, hence Recession is something that is scientific and can be determined when it will touch down.
0% no doubt
rescession is when your GDP contracts in two successive quarters, got nothing to do with profits.
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Not entirely true. A business will always have expenses (rent, transport, salaries, telephone…); as well as liabilities (suppliers, drawings…). These must be factored in.
So, ukinunua simu Nairobi at 15,000 na umpelekee @Mundu Mulosi mpaka Butere na GoneIn4Seconds (G4S) for 20,000; your profit will be 20,000 - 15,000 = 5,000. (minus delivery charges za G4S, airtime ulitumia kuivisha hiyo deal, na fare ulitumia kufika town).