There is talk about the Triple Bottom Line: Profit, People and Planet. I once heard a CEO say that without profit – he cannot do the other two, so profit is his main focus. A different way to say this is “No margin, no mission” or “no profit, no purpose.” Another CEO told me her theory is to “manage the brackets” – meaning the losses on financial statements — so that there are profits!
In 2012, privately held US companies averaged $15,279 profit per employee. Where does that cash go?
1) Into the business for return,
2) Back to the shareholders (who are the owners in a private firm).
If a public company sits on too much cash, then it becomes a takeover target.
Where do you invest your profits?
