Posted by Dinah on March 21, 2006, at 7:56:43
In reply to Re: Obscene profits???? » AuntieMel, posted by special_k on March 21, 2006, at 3:18:30
Profit is usually expressed and compared in the form of earnings per share, or as an earnings to equity ratio, or net profit as a percent of sales.
In company with greater sales, the profit percentage is usually lower. That's one reason Wal Marts can offer things at lower prices than mom and pop stores.
However, with Coca Cola and ExxonMobil, both companies are probably large enough that that shouldn't be a significant factor.
In other words, it's unfair to judge profit in terms of absolute dollars, because it ignores all other factors, such as total size of the company, total sales, the amount invested in the company and the subsequent return on equity, etc.
It's also unfair to judge solely in terms of net profit percentages. A small company with limited business needs vastly greater net profit percentage in order to produce an adequate return on investment or livelihood to their owners.
It would be nice to believe that the congressional committee took all those things into account before deciding to bring someone before them. And that anyone serving on a congressional committee has received the necessary training to do their specific assignments.
poster:Dinah
thread:622564
URL: http://www.dr-bob.org/babble/poli/20060304/msgs/622811.html