While Pershing Square's efforts to revive J. C. Penney, a retailer, are faltering, nobody thinks that is due to an excessive focus on short-term profitability.To the critics, those activist shareholders not motivated by short-term financial gain have other dubious intentions.
The catalyst for profit taking could be regulatory strains or excessive cash consumption that isn't reflected by profitability gains in startups.
The real increase came in its profitability, thanks, in large part, to the excessive leverage it used.
It is a form of reverse return on investment (ROI) where your ability to force the attacker to spend excessive amounts of time, energy and money undermines the profitability of the attack itself.
Now they have the power to vote down higher pay, if they feel the profitability of their investments is being damaged by excessive salary bills, they may well start exercising that power as they did at the Barclays AGM.
They view the economic crisis as resulting from the lack of profitability of business investment and entrepreneurship caused by excessive taxation and regulation.
Moreover, excessive loan growth adversely affects bank interest income which decreases the profitability.
Electricity market price is going to be the most critical factor affecting the profitability of renewable energy providers in near future while the excessive production cost above the market price is recovered by transient policy supports like FIT.
There are also concerns among some analysts who study economic development that China's airport program is excessive and that the country's high-speed rail is likely to erode the profitability of airports.
It proposes that national regulators ensure that compensation awards at financial institutions are based not just on profitability but also on the extent to which a trader or banker did not take excessive risk in order to generate high returns.
