Universal profit-meter

With respect to The Profit Formula^® it is NOT essential to know what the values and standards are. They are just input data. Of course, the fact is: garbage in, garbage out.

The Profit Formula^® is value-free. It is a universal profit-meter, suitable for measuring real (scientifically correct) as opposed to artificial (defined at will) profit. For instance, inputting fiscal premises will lead to the fiscal profit figure. The one and only real profit can be found exclusively by inputting the real values and standards. 

Although there is some freedom to establish a value, standards - once established - must normally be maintained. Even though some values can seemingly be filled in at will, subsequently the errors will be noticed. This is because each and every change in some standard must be explained and defended and the values of assets at the end of this period are identical to the values at the beginning of the following period. All the mentioned amounts of money in the accounts are inter-dependent. No euro, no dime, no cent can disappear or appear just like that.

An item in the balance sheet is often the total of a lot of parts. The value of a single car is of no importance, the issue is the value of a fleet of cars. The Profit Formula^® is based on the laws of large numbers. Working with a lot of figures is quite different from handling just one single number.