251
Poor man just wanted to run a brutal and profitable drug empire 😭 20th Century History (media.piefed.social)
submitted 6 months ago by to c/historymemes@piefed.social
44 comments fedilink hide all child comments
 
you are viewing a single comment's thread
view the rest of the comments
[–] -2 points 6 months ago* (4 children)

Yes, but losing 10% of an asset typically refers to total asset value, not revenue.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 4 child comments
    •
  • [–] 6 points 6 months ago (3 children)

    We’re not even including losses on the cocaine itself, this is all just about the revenue. He didn’t lose 10% of his business every year.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 3 child comments
    •
  • [–] 1 point 6 months ago (2 children)

    I read it that he lost a significant part if his cash assets. Revenue is a different concept. In your calculation you made the comparison with revenue.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 3 points 6 months ago (1 child)

    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.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 1 child comment
    •
  • [–] 1 point 6 months ago* (last edited 6 months ago)

    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.

  • permalink
  • fedilink
  • source
  • parent