big businesses running at big losses

Cashflow.

Profit and Loss are not relevant.

There are too many variables to write about.

Dan

What don't you understand?

If you have cash you exist.

This is simplistic using you as an example.

All your debts including mortgage come to £200k.

All of your monthly bills including food come to £2k per month.

You decide not to work so you have £0k per month income.

So you lose £2k per month.

But you have £20k Capital in the bank.

So you exist and can carry on functioning for 10 months.

A loss does not mean you have no cash to service debts.

If you started a cafe you would buy/lease the building.

Pay business rates.

Pay for refit and stock. Get staff.

All before you have made a single penny in income.

But you have a loan from friends, bank or your own previous ventures to cover monthly outgoings for x amount of months.

As long as you make more than you spend by the date the money would run out with no income you are ok.

If you do not then you have no cash and are now bankrupt.

Large business is no different.

Buy a few shares in FTSE 100 companies and you will be a shareholder.

Annually you will receive the Company Report which will have all the financial details, what was done, where they want to go in the next year.

You will see their outgoings, income and cash reserves.

You can't run a business at a £2m loss if you have no income to sustain the debt.

You are not comparing like with like.

There are other things to but the above is just a simple example for you.

Dan

This is looter-socialism posing as capitalism.