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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: Monica Detwiler who wrote (79106)5/2/2002 4:07:01 PM
From: fyodor_Read Replies (1) | Respond to of 275872
 
Monica: Revenue is not a good measure of corporate efficiency.
Profits are not a good measure of corporate efficiency.
Just what metric is appropriate?


I think you need to reread what I wrote.

I said that profits are a "much better" measure.

However, there are two fundamental problems:

- Profits can easily be a lagging indicator (e.g. AMD not getting as high ASPs as Intel, arguably because they have not always delivered well).

- Who cares what the profits are per employee?

Profits, disregarding employees, is the ultimate measure of long term efficiency.

And, if you want, we can start discussing what "profits" AMD and Intel have actually produced ;-)

-fyo