8/26/2023 0 Comments Joe rogan spotify contract lengthThat makes lenders far more likely to lend to them. They actual had positive operating income in 2021. In 2021, Spotify had an operating loss of 430M on 11B of revenue. They had $1.1B in debt vía outstanding convertible notes at YE22. Typically via convertible notes where you can convert your debt into shares of the company at a certain price. People loan to non profitable companies, without hard assets, all the time. They have $2.5B on their balance sheet for year ended 2022. Going to show how you’re wrong with actual numbers and not just random shit in your head. Yeah you’re right man I’m just lying on JRE subreddit for some reason.When interest rates are higher, borrowing is more expensive, and a company is more likely to pay in equity vs borrowing cash. It’s cheaper to borrow when interest rates are low. Presumably as a company that runs at a loss Spotify has a line of credit with a variable interest rate of fed interest rate + X%. And you’re making my point - would it be better to borrow cash right now to buy your home? Or to have borrowed cash two years ago when interest rates were lower? When interest rates are high - it’s more expensive to borrow cash and pay someone in cash. And because when youre a company running at a loss it’s a lot easier to borrow cash to pay in cash when interest rates are low: you pay less to borrow.The start up I work for runs at a loss, but we have millions in the bank because we need to be able to pay for things to grow - to eventually not run at a loss. The amount of cash you have is a balance sheet measurement. Running at a loss is an income statement measurement - not a balance sheet measurement. Running at a loss just means that in the current fiscal year you had more expenses than income. Most tech companies have cash reserves from either borrowing or a capital infusion. Running at a loss doesn’t mean you don’t have significant cash reserves.Then you get a kid and you’re locked in, save some massive increase in your earning potentialĮdit: this is assuming crack houses are no longer being sold for a million dollars near where I’m at, hopefully they’ll solve that by stifling foreign ownership (I’m from near Toronto) This literally could be the difference between you being able to retire or working til you die but most people figure it out after they’ve moved out and are already in the rent cycle. Live in the basement of said house and have other people basically pay your mortgage while you build equity and earning potential. You can go straight to work instead and take advantage of living with your parents for a few years to save a down payment on a house. In fact it’s even more important if you’re poor and you’re planning on going to college just for kicks. There seems to be this idea that personal finance is only for the rich, I argue that it’s important from high school and should be a mandatory class for students from all financial backgrounds.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |