I compared the size of the two numbers I was given. I didn’t call them equivalent, I didn’t say they described the same thing. I only even used the word revenue after you did, because I was using zero context to compare the numbers (I just like numbers and it popped out to me that it was 10%)- it wasn’t until you said revenue that it occurred to me that he probably would have reinvested much of that money and it wasn’t just profit.
That said, now that I am thinking about it, he didn’t exactly have access to non cash investment or value storage options. I wonder if there was much of a difference between the total money coming in and the total cash coming in.
Yes I know, you divided number one with number two and did the math right. I’m just saying that in the general world of business metrics comparing those numbers is not really a common practice.
Edit. For comparison, you might have a car that loses 5k of its value in a year and you work and get paid 50k a year. Surely that 5k depreciation is 10% of your yearly income, but typically you count that per cent from the value of the car instead.
I compared the size of the two numbers I was given. I didn’t call them equivalent, I didn’t say they described the same thing. I only even used the word revenue after you did, because I was using zero context to compare the numbers (I just like numbers and it popped out to me that it was 10%)- it wasn’t until you said revenue that it occurred to me that he probably would have reinvested much of that money and it wasn’t just profit.
That said, now that I am thinking about it, he didn’t exactly have access to non cash investment or value storage options. I wonder if there was much of a difference between the total money coming in and the total cash coming in.
Yes I know, you divided number one with number two and did the math right. I’m just saying that in the general world of business metrics comparing those numbers is not really a common practice.
Edit. For comparison, you might have a car that loses 5k of its value in a year and you work and get paid 50k a year. Surely that 5k depreciation is 10% of your yearly income, but typically you count that per cent from the value of the car instead.