RE:Providing Company Reaches 180 million Revenue and RoundedThis post is ranked 5 stars after 98 reads. Good grief, are you all incapable of understanding business and cash flows?
Revenue is nice. But earnings are how manufacturers and service companies are valued. It called the Price / Earnings ratio. And a P/E of 16 is considered average these days.
Earnings are what is left over after the costs are deducted. Like materials, rent, labour, taxes, depreciation, sales people, travel, energy, etc. A healthy manufacturer has net margins of 5%-20%.