Ah, Math.
Big numbers always impress dumb people.
"Exxon Mobile $39.5 Billion - up $3.4 Billion over 2005"
And...?
What was Exxon's Gross?
answer: $378 BILLION.
Go ahead, do the math. Take one and divide it by the other.
Exxon's Net revenue was barely over 10% -- in a year in which gas prices shot up.
In most industries, a healthy company should be generating approximately 15% in profit. Historically, that was the number used to determine a "fair profit". "cost plus" or what have.
But to the statistically impaired, like Col Gene, who just sees lots of numbers he doesn't understand, he just sees $39 billion.
Let's look at Microsoft for a comparison:
For its fiscal first quarter, which ended Sept. 30, the company announced a profit of $2.9 billion, up from $2.6 billion. Revenue was $9.2 billion, up from $8.2 billion.
That's $2.9 billion profit out of $9.2 billion grossed. That's around a 30% profit margin!
But $2.9 billion isn't as big a number and doesn't make people like Col Gene freak out as much even though Microsoft's profit margin is gigantic.
So explain, Col Gene. How exactly is Exxon being greedy? Because they make a lot of money? Is that what greed is to the economically challenged?
If Exxon made $1 trillion a year with a profit margin of only 3% (i.e. basically break even) that would still be $30 billion. Is that greedy still?
