Growth
Research and development
R&D
What it is
Money spent designing tomorrow's products: engineers, labs, trials, software development.
How to read it
Against revenue, it reveals how much the model rests on innovation. Sharply rising R&D weighs on today's earnings to build tomorrow's.
What it does not tell you
🪤 Booked as an EXPENSE though it's an investment: of two identical companies, the one that innovates looks less profitable in year one, while actually building its future.
Other measures — Growth
Educational content. Polaris is not a registered investment adviser and makes no recommendation.