this post was submitted on 28 Feb 2024
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This does not stop companies being successful in IPOs and giving share holders lucrative gains. Take Atlassian as an example of a company seen as successful but is not profitable.
Atlassian has not yet posted a full-year profit in its 20+ years
What does that mean? Who pays the shortfalls?
I am not a CFO but I believe essentially by eating into cash reserves and accumulating debt. Also there is some wizardry when you work out operating profit / EBIT.
Earnings vs Debt
Someone more financially competent may want to offer a more accurate answer.