Well ,what I posted has, IMO, to do with the Actual Business Performance of the company, and how much of its Top Line Revenue, if any, reaches the Bottom Line.
And it's only that Bottom Line Revenue that can actually affect Book Value, based on the Balance Sheet equation of :-
Share Capital + Retained Income = Total Assets - Total Liabilities, where "Retained Income" incorporates Bottom Line Revenue, after Dividends, and "Total Assets - Total Liabilities" represents Book Value.
And it's only via the "liquidations", that you referred to, that a shareholder can ultimately benefit from that Book Value,. i.e. there's no more company.
So, if a company is already losing money after it has paid for the Cost of items and goods that it needs to produce its Top Line Revenue, and also the cost of running the company from the standpoint of the Salaries and Rents, etc.., i.e. SG&A, that it needs to run its business effectively, then there's no way on god's earth that there'll be anything left over, on a regular basis, to reach that all important Bottom Line, IMO .... |
