Why do listed companies lose money?

For long-term stock selection, the first thing is to pay attention to the company's performance, but if you look at the fundamentals, most stocks are losing money. I remember I wrote it the year before last. I have seen their performance when I worked in companies and factories before. The reasons for the loss are as follows:

One: Management loopholes

Appear in the price cost and quality acceptance of purchasing raw materials, there is considerable oil and water above the buyer or manager. Unqualified high-priced materials have come in, and it is strange that the cost will not increase.

Two: financial false accounts

There are two accounts in finance, one for internal verification and the other for tax evasion. Even the number of employees is falsely reported, and the salary receipt is also false. They all signed a few with notebooks. Then by the end of the year, the company was losing money on the accounting statements, but in fact, the company's internal accounts were profitable. A low-cost piece of furniture can earn several times by painting and putting on makeup. Not to mention the profits of chemical plants. According to insiders, the profits are at least 50% and the highest is 200%-400%.

Three: the talent problem

Really talented people are useless.

A truly loss-making company cannot have cash flow. As long as it runs well every year, the company will at least make money.