DAY1 Education : Sustainable Competitive Advantages Explained
@Tiger_Academy:
Hi, tigers~Today is the first day of column "Learn US financial reports for beginners".In this article, I will introduce 2 practical methods of how to judge whether a company has competitive advantage. Total revenue Gross profit 1. Total revenueYou might think, company A with tens of billions of dollars in annual total revenue is much better than Company B with billions of dollars in annual revenue, but is that true? Let me give you an example:Jack and Rose run separate companies. Jack's company generates $9,000 in revenue per month, while Rose's company generates only $6,000.From a revenue point of view, you would definitely think that Jack's company is better developed and more competitive.But if we do a careful analysis and take into account the cost of sales each month,