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Profit transfers

Topics: Golden Rainbow: Profit transfers


Monday, November 2, 2015 - 01:37 am Click here to edit this post
if i lower my profit transfer from my corps from 60% to 0% will it benefit the value of the corp? if no how do i go about making the value of all my cops go up?


Tuesday, November 3, 2015 - 03:19 am Click here to edit this post
Low or zero profit transfer helps your corps accumulate cash. The more cash your corps have, the higher their market value is likely to be. Profitability seems to be more important than cash in determining market value. A high country welfare index and high product quality will help your corps to be more profitable.


Tuesday, November 3, 2015 - 05:19 am Click here to edit this post
Hello, Madoff: I have Country Controlled Public Corporations in my country, What is a good percentage of profit contributions for this kind of corporations? Thanks in advanced for your answer. Cheers! :)


Tuesday, November 3, 2015 - 07:53 pm Click here to edit this post
There is a problem with public corps. They can accumulate cash that becomes inaccessible.

Profitable public corps are supposed to transfer some cash automatically when they have 60 billion+ in net cash, even if the profit transfer is set to 0%. But in practice, they rarely make those automatic cash transfers, even when the profit transfer is set to 100%.

When a public corp has 100 billion+ in net cash, it's extremely slow to withdraw it, even with a high profit transfer percentage. That feels like a ripoff.

Therefore, I don't have any good strategy right now for the profit transfer of public corps. A high profit transfer could help prevent public corps from accumulating cash we can't use or withdraw. A low or zero profit transfer could increase the market value so we can sell the shares at a big profit.


Wednesday, November 4, 2015 - 02:47 am Click here to edit this post
Thank you, Madoff! :)


Wednesday, November 4, 2015 - 03:27 am Click here to edit this post
I'm pretty sure the profit you gain only comes from the percentage of shares that you own. Correct me if I'm wrong Madoff. Example if your corporation makes 1B profit and you own 24.8% of the shares. You'll only get 248 million a month if the profit transfer is at 100% 124 million if it's at 50. Which is why countries with many public corps set high taxes since they pay tax before profit and pay it all to you, and idk for sure but I think the profit goes to ALL shareholders including investment funds... or just the country and any enterprises that have shares. If that's the case you'll actually be losing money. Although idk for sure, Madoff.. This is a question I have too if you could answer for me. I'm scared to set profit transfer on my public corporations because of this reason. A lot of them have 150 to over 200B in cash. When I was on LU and didn't know anything about how they worked, I put them at 90% and lost a good amount of money. I probably have a good 20T in my public corps on all worlds and enterprises.


Wednesday, November 4, 2015 - 07:23 am Click here to edit this post
You're right that the profit transfer is distributed according to shares owned. All shareholders get profits, whether they are countries, CEOs, or investment funds. That's not a problem or an issue.

The problem I addressed is that it's extremely slow to draw down cash from profitable public corps that have accumulated a lot of cash. Profitable public corps that have net cash of 60B+ transfer some cash. But over time the total cash changes very little. Fresh profits mostly replace transferred cash.

Here is an example. Torrington Precision Bombs has 100% profit transfer. In September 3602 it had 195B in cash and automatically transferred 10B in cash to shareholders. That's on top of the monthly profit transfer. By June 3603 the cash was back up to 194B and rising, despite monthly profit transfers of 100%.

My point is that shareholders can't withdraw most of that cash. It's inaccessible.

I don't understand why you think you lost money by setting profit transfer to 90%.


Wednesday, November 4, 2015 - 09:18 am Click here to edit this post
Because the IF were in other countries that I do not own, but it's not a big deal to me now. Just didn't know when I started out.

So about 50% of profits were being given away from the corporation and me, but now I know what you're saying. Thank you

Michael Servus Dei Defensor Fideique Populi

Tuesday, November 10, 2015 - 10:19 am Click here to edit this post
So is it that when I set profit transfer to 93%, if the corp is not making money, no profit will be transferred and no cash saved in the corp is transferred either?

I notice that some corps periodically suffer from a huge drop in corp cash. And that these corps are having high profit every month, never negative at least. Some even making 1B per month. But the YTD cash says automatic cash transfer is 0. What does this mean?


Tuesday, November 10, 2015 - 04:30 pm Click here to edit this post
First, the game usually won't transfer surplus cash unless it accumulates over 60B usually. The profit transfer is is only done if you make a profit in a month, and then only 93% of the current month's profit in your case. The 93% profit shows up in the state corp profits section of your income statement and not in the auto cash transfer number.

Second, I believe the auto cash transfer refers to the transfer of excess cash. The huge cash drop could be due to product purchases or upgrade purchases. You should check the cash flow section of the income statement for that corp to see where it is spending its cash each month. That should give you some clue of what is going on with the cash.

If you wish to post the name of the corp and the country/world it is in, perhaps someone could look at it and give you a more specific explanation on this.

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