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by edanm 1186 days ago
It's not a weird analogy, it's a great analogy.

Companies don't use their budget only for profit and not to "buy food", that's a ridiculous assertion. Companies get income, the use it to pay for all the operations that went into making that income, usually mostly salaries. Only what's left over is profit.

And if a company sees that next year, when it expected income of 100m, it instead will only get 80m, that difference has got to affect it somehow.

2 comments

I think we are confusing derivatives here. No, when my income is growing from year to year, but just growing a little slower, I don't revisit my personal budget. I think these company leaders are seeing the second (or third) derivative starting to go down, and are panicking without actually losing money (base measurement) or revenue (first derivative).
Nope. Try again.