It is very much essential for any company to earn profit atleast above average. Because we never know what will happening in future cause it is uncertain, so , it is better to overcome all the risk in order to genrate as more revenue as possible. That profit may help a company to take down some serious issues. On the bright side, if the company is planning to expand their business then this economy will bring some fruit full results.
Thank you.
I agree with John and patel's comments. Having profits above average helps fill up company's cash reserves. In case of economic downturn, they can use it to keep it afloat. In current competitive market we can see Apple with over $300 billion in cash reserves while Amazon on the other hand does not have it. Unlike Apple, Amazon revenue relys on subscription cost for its AWS. No matter what economic situation is, they can stay afloat with it.
Source
https://www.google.com/amp/s/investorplace.com/2018/08/apple-vs-amazon-which-has-the-most-upside/amp/
Emerging industries can look at above average profits to recoup the investments faster and to plough back into the business to entrench themselves firmly. But others will not have the privilege as market forces determine the prices and consequently the profits.
Already, organizations must first make profits at least above average. And then consider generating as much revenue as possible
thank you.
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