How to Calculate Taxes When There Is a Negative Profit. Running your own business certainly has its trials. In a poor year, your business may lose money, resulting in what some call negative profit.

In this case, an extremely high negative number can be the best indicator of success, because positive profits are high compared to the negative stockholder equity amount.

Return on equity, or ROE, tells investors how much in profit a company makes for every dollar it has in stockholder equity on its balance sheet.

In this case, an extremely high negative number can be the best indicator of success, because positive profits are high compared to the negative stockholder equity amount.

In this case, an extremely high negative number can be the best indicator of success, because positive profits are high compared to the negative stockholder equity amount.

By calculating a company's weighted average number of outstanding shares, we can get a more accurate picture of its earnings.