Agreed — % of market cap is the only meaningful comparison.
% of revenue doesn’t work because some companies are high-revenue low-profit (supermarkets), others are low-revenue high-profit (luxury goods). % of profit doesn’t work because profit is fairly arbitrary (if a company reinvests everything, then zero profits). Cash on hand is even more arbitrary.
But % of market cap tells us exactly the impact on owners, it’s literally the amount their stock is going down and they’re therefore being penalized.
% of revenue doesn’t work because some companies are high-revenue low-profit (supermarkets), others are low-revenue high-profit (luxury goods). % of profit doesn’t work because profit is fairly arbitrary (if a company reinvests everything, then zero profits). Cash on hand is even more arbitrary.
But % of market cap tells us exactly the impact on owners, it’s literally the amount their stock is going down and they’re therefore being penalized.