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A stronger yen reduces profit earned overseas.
A company that sells merchandise on credit must make allowances for uncollectible accounts, which reduces profit.
And with the weakening U.S. economy and strengthening euro, which reduces profit on Porsches sold outside of Europe, getting a piece of a bigger manufacturer is probably Porsche's best hope for staving off a precipitous decline in profits.
Typically, companies see workers entirely as a cost, something that reduces profit; as a result, many try to minimize the number of workers and the amount they are paid.
(Another, perhaps more-intuitive, way to put this is that vigorous price competition reduces profit margins, and reduced margins result in cutbacks in charity care and pro bono work).
A low level of trust increases transactional costs and reduces profit.
Similar(51)
Whether it also reduces profits depends on market conditions.
Each "false positive" reduces profits and angers an honest shopper.
Most companies have not treated options as an expense because it is not mandatory and doing so reduces profits.
First, it increases firms' production costs and reduces profits, so they supply fewer goods and services at any given price.
In doing so, it artificially reduces profits.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com