Starlink has reached cash breakeven — Elon Musk

Whatever breakeven cash flow means, that's a musk term. In Twitter he described it as break even while ignoring all loan expenses, which is obviously nonsense.
 
Johnatan56 said:
Whatever breakeven cash flow means, that's a musk term. In Twitter he described it as break even while ignoring all loan expenses, which is obviously nonsense.
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What do you mean ignoring loan expenses? You mean he's not counting loan repayment expenses? Like he asked an accountant to remove those monthlies from the balance sheet?
 
lkpat said:
Nitpicking, but in starlink terms, that's the dish. The base station is not a consumer device but equipment that links into a fibre backbone.

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Yeah. At the back of my mind, I knew there was something wrong with my choice of noun, but I was too tired to correct it. Thank you.
Edit: Would antenna not be a more nitpicky choice though?
itareanlnotani said:
If we're nitpicking, thats not improved.

The v1,v2 have motors for tracking. This doesn't.
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Ah yes, I also fell for that one in the beginning.
Look more closely and you will see the improvement. LEO satellite density has reached a point where automated motorised tracking isn't necessary. The new antennas have a 110 degree FoV vs 100 degrees. The removal of motors means that it is cheaper to manufacture, less electricity consumption, smaller and weighs less. There is also less to go wrong in the long-term. The profile is also smaller, so it can withstand stronger winds. The antenna is also far more suited to be fixed permanently. Lastly, the Wifi has been upgraded, now Wifi 6 with 4x4 Mu-MIMO.

So yes, it doesn't do a sexy little dance when setting up. Who cares?
 
lkpat said:
What do you mean ignoring loan expenses? You mean he's not counting loan repayment expenses? Like he asked an accountant to remove those monthlies from the balance sheet?
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As in that's his definition of it, any accountant would say they're not break-even.
 
Accountant schmaccountant...

Breaking even on a EBITDA level is an important milestone. How you chose to account for and finance putting assets into space is a corporate finance problem not a business one...
 
Johnatan56 said:
Whatever breakeven cash flow means, that's a musk term. In Twitter he described it as break even while ignoring all loan expenses, which is obviously nonsense.
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EBITDA, or earnings before interest, taxes, depreciation, and amortization, is an alternate measure of profitability to net income. By including depreciation and amortization as well as taxes and debt payment costs, EBITDA attempts to represent the cash profit generated by the company's operations


Musk term.... :unsure:
 
Starlink breaks even, as our Government can't even get a power company that people are literally throwing billions at to even report a year of profitability.
 
Johnatan56 said:
As in that's his definition of it, any accountant would say they're not break-even.
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Are you saying that because they have loans, they're not breakeven? Accountants would disagree.
Breakeven is not about having no liabilities, it's about income and expenditure. As long as your revenue is equal to your production costs and your debt is all good, you're in the breakeven territory.

Find me a business with no liabilities.
 
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