I have a question: Why is extra capital important in case of revenue drop, either quarter or annual revenue?

I'm asking: what are the benefits of getting large amounts of extra capital if revenue drop (decrease) happens? The reason I'm asking this is to make sure the importance of other financing figures are as much as possible minimized, e.g.

  • upward share price movement (more value of the company),
  • positive numbers of other elements on financial reports,
  • good looking dividends,
  • increase EBITDA multiplier in particular industry which defines purchase price of company if it was to be sold,
  • large account receivables showing income in the near future,
  • potential successful past acquisition transaction assuring extra money from acquired investment,
  • movement of company address to tax heaven country on purpose to (partially) in a legal way to pay the taxes, etc.

Whatever other positive news factors for the near future could cover (stabilize) the drop of the revenue. So I'm clarifying my question again, for the third time: How and where exactly would extra capital benefit the company with reported decreased revenue but at the same time minimizing the importance of other positive factors that could bypass the need for that capital?

To be sure I'm as much as possible understandable, I will ask my identical question in fourth different way for the fourth time: Why would the company need to get more capital for fallen revenue situation but at the same time having them "burnt" all the hopes of fixing the revenue problem with other factors? Your answer would be highly appreciated.

  • Important for the who's perspective and in what way ? There are many possible reasons why a company would want to stockpile liquidities
    – ApplePie
    Nov 20, 2020 at 16:05
  • Your question assumes that it is 'important' to increase capital after revenue falls. Why are you assuming that? If you don't know whether it is good or bad, I suggest the wording be changed to "Is it important for a company with falling revenue to increase capitalization?**" Nov 20, 2020 at 18:27


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