Why do profits need to go up every quarter?

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What would happen if a companies profits just stayed the same over a period of quarters? I obviously don’t understand it at all but isn’t it just unsustainable to expect growth indefinitely?

In: Economics

19 Answers

Anonymous 0 Comments

Inflation exists which means employee salaries need to at least match inflation every year. Apart from that, performance hikes etc are all why profits need to keep increasing. To increase profits, you need more and more customers, and you need to hire more employees to manage the workload of more customers, and it’s a cycle that repeats.

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