• 11111one11111@lemmy.world
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    10 days ago

    Except their profits need to also cover: Reinvestment in the Business: This includes spending on research and development, upgrading equipment, expanding operations, and improving infrastructure.

    Debt Repayment: Reducing existing debt to strengthen the company’s financial position.

    Dividends: Distributing a portion of profits to shareholders as dividends.

    Share Buybacks: Purchasing the company’s own shares to reduce the number of outstanding shares and increase the value of remaining shares.

    Employee Compensation: Providing bonuses, raises, benefits, and other non-salary incentives to employees.

    Mergers and Acquisitions: Acquiring or merging with other companies to expand market reach and capabilities.

    Savings and Reserves: Setting aside funds for future investments or as a buffer against economic downturns.

    Corporate Social Responsibility (CSR): Investing in community projects, environmental sustainability, and other social initiatives.

    Marketing and Advertising: Increasing brand awareness and market presence through marketing campaigns.

    Technology Upgrades: Investing in new technologies to enhance efficiency and productivity.

    To name a few.