Cash Flow is King

Profit dominates business-related headlines. This month, Apple announced the biggest quarterly profit ever made by a public company. Apple reported a net profit of $18bn in its fiscal first quarter, exceeding the $15.9bn made by ExxonMobil in the second quarter of 2012. Net profit after interest and tax, or the ‘bottom line’ (the last line on an income statement), is a key figure for a business. Firms naturally emphasise the ‘bottom line’, because this is the sum available for distribution ...

Groupon deals: a win-win or a win-lose proposition?

Although less than three years old Groupon, the daily deals internet business, has become the phenomena of recent times, with a staggering growth in revenues and subscribers (although it remains unprofitable). The company’s much vaunted initial public offering (IPO) is almost as eagerly awaited as that of Facebook. After postponing presentations to potential investors early this month because of volatility in stocks, the online coupon giant is now aiming to go public in late October or early November. The firm ...