• UnderpantsWeevil@lemmy.world
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    12 days ago

    divided the profits by the number of employees.

    Well, firstly, the profits are after administrative expenses, so you’re counting your bosses twice in this math. Would make more sense to use EBITDA as the baseline. Or, at the least, net revenue

    Secondly, the benefits of your code don’t end with the fiscal cycle. They end when the code is retired. If you’re the guy who programmed Notepad, for instance, that’s been paying dividends for nearly forty years.

    It’s not perfect, it’s napkin math

    You’ve got to be careful as napkin math can get incredibly deceptive. You can quickly find yourself a victim of Hollywood Accounting with employers/contractors who insist they’ve never turned a profit, despite enjoying a lifestyle that would suggest otherwise.