Profitability in companies. i dont get it. pls explain.

Hello People

When the inflation is between 10-15%(unofficially...dont ask where I pulled this figure out but I've read this somewhere online atleast a couple of times recently ) why do businessmen do business when the net profit margin is below 15%? I'm not accounting champ or from the commerce background but am just a regular guy doing business. My personal view is that it does make sense to do business if you dont make atleast 5% inflation adjusted returns.

Am I thinking right?

Thanks

Raj

Replies (2)

am not sure... but the inflation rate may be overall.. not industry speicific..

Originally posted by : *Sree*

am not sure... but the inflation rate may be overall.. not industry speicific..

Lets assume its overall. It just doesn't make sense does it to do business at a net profit % less than the inflation?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details