Personal Finance & Money Asked on January 11, 2021
I have a question: Why is extra capital important in case of revenue drop, either quarter or annual revenue?
I’m asking: what are the benefits of getting large amounts of extra capital if revenue drop (decrease) happens? The reason I’m asking this is to make sure the importance of other financing figures are as much as possible minimized, e.g.
Whatever other positive news factors for the near future could cover (stabilize) the drop of the revenue. So I’m clarifying my question again, for the third time: How and where exactly would extra capital benefit the company with reported decreased revenue but at the same time minimizing the importance of other positive factors that could bypass the need for that capital?
To be sure I’m as much as possible understandable, I will ask my identical question in fourth different way for the fourth time: Why would the company need to get more capital for fallen revenue situation but at the same time having them "burnt" all the hopes of fixing the revenue problem with other factors? Your answer would be highly appreciated.
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