this post was submitted on 29 Jul 2023
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They still made around $1/2 BILLION.
I love how every headline about their earnings focuses on the drop from before and not on the actual number they made.
Boo-fucken-hoo the record profits they were making the last few years couldn't be sustained forever. Oh noes!1!!!
Dude a 95% drop in profits YOY is most assuredly newsworthy
No. Not at all.
If a company made one penny last quarter, and 10,000,000 this quarter, then their profit is up 10 billion percent. It’s a stupid headline.
If a company did that it would be extremely newsworthy, as a 1,000,000,000,000x profit increase.
I don’t see your point.
If the same company made 10,000,000 last quarter and then made 500,000 this quarter that would also be newsworthy… as you know, a 95% drop in profits.
“Company so and so did an INFINITE PROFIT INCREASE!”
Stupid.
My point is that it’s stupid to use percentages when reporting profits unless you’re writing for clicks. That’s not how professional do it when looking at earnings reports. Ever. And for good reason. Again, Samsung stock is not tanking, because investors are smarter than internet kids who are bad with numbers.
Revenues are looked at as percentages. Profits are looked at as raw numbers. Typically.
Relevant username btw hahaha
😳I really didn’t mean to upset you so much wee man… don’t get too emotional. Just having a conversation here aren’t we?
Percentage is entirely legitimate to look at, it’s merely a way of quantifying what the raw numbers mean versus the raw numbers from last years performance.
No one said Samsung stock is tanking, you’re kind of shouting that into an empty room.
I was acknowledging that a 95% drop in profits vs the same period over the previous year is definitely a newsworthy item especially in two consecutive quarters… I think any shareholder of Samsung would agree.
Company makes 1 dollar q1 2022. Company makes $.05. Q2 of 2023.
Headline: “company loses 95% of its profits.”
It’s the opposite of meaningful.
It is meaningful if you measure Q1 2020 vs Q1 2021. You’ve got a bit confused as to what YOY is, you’re not just measuring two random quarters from different years (q1 2022 vs q2 2023?), you’re comparing against the performance in the same quarter the previous year.
It is a very meaningful way of judging whether a companies performance (ability to turn a profit and create value for the investor) has improved against the same period the previous year.
https://www.investopedia.com/terms/y/year-over-year.asp
There is a little bit of very basic information for you. I can try find something more colourful and with nice pictures if you need.