Cash Hash » Loan/ Loans » Cash Loan/ Cash Loans » Do less profit means loss?

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  #1 (permalink)
: let's say a business is currently going in good profit. but still there are many chances for it to improve and increase it's profit.
but the business is not considering any improvements and want to run at same pace as it is running.
This means it is having less profit than it could have.
So does this less profit means business is in loss?

If people from business experience and background or business or accounts degree could clarify it for me in simple words, it would be great.
do me a favor. write down source of information, like personal view, experience or some book or website.
Thanks a lot.

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  #2 (permalink)
: A loss means you have less money than when you started. A smaller profit than you could potentially be getting is still a profit, and if you are happy with the results and can pay back your bank loans there's no problem.

However, when investors put in money, they're not just looking to get their money back with interest. They're hoping for Big Things to happen that would line their pockets with huge dividends or let them cash out for several times what they started with. If a company stops growing, it stops looking so good as an investment because its potential value in the future is much less than before. That's why you see a stock price fall after the company reports a smaller (but still ridiculously large) profit than analysts hoped for.
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