Revenue Is Vanity Meaning

I m going to ask you a few questions here just to discuss it.

Revenue is vanity meaning. Published on september 21 2015 september 21 2015 142 likes 17 comments. The owner of the business would usually reach for the profit and loss statement while the accountant wanted the balance sheet. I believe that revenue is vanity profit is sanity but cash is king the importance of cash flow can never be understated in a business. In fact many showed consistent losses when measured in net profit terms.

In a previous life when i owned a company that implemented accounting software i noticed something often happened when we ran the first set of financial statements. Revenue is only the bluntest of instruments when it comes to measuring business health. We are talking about did you ever hear the expression revenue is vanity profit is sanity but cash is king exactly. In the midst of busyness of running your company you should have a holistic understanding on the 4 chapters so that the fruits of your labor are safeguarded enhanced and ultimately get the valuation.

Revenue is vanity one of the biggest mistakes made is focusing only on the top line i e. I know companies. Perhaps you don t use the word turnover so please insert your word sales revenue fees receivable gross income into the sentence is vanity. We have to look at both margin and the cost of generating that revenue.

Sales is vanity profit is sanity or volume is vanity turnover is vanity revenue is vanity means that it s not how much that one sells that really counts but how much money is made. Cable television industry most cable television operators earned zero profit. Cash flow is reality. Turnover is vanity profit is sanity but cash is reality.

Published on february 5 2018 february 5 2018 21 likes 2 comments. We re going to dig into that and talk about cash and cash flow. Turnover is vanity profit is sanity but cashflow is king forget this quote at your peril. A business that sells one automobile at a high premium could have more profits than a business that sells ten automobiles.

It contains one of the core secrets to long term business success. So while obviously important to grow customers and sales chasing revenue at the cost of all else is vanity and a potentially fatal blunder. All revenue is not equal. People get fixated on that figure because it is the largest one since it has not yet been reduced by various costs and expenses and also the simplest one to calculate.