Exxon question

I made a comment about Exxon being charged with an extra 6 million tax in the course of a year and you guys said that if it happened, gas prices would go up.
How does a 6 million tax on a 285 billion company affect them? Do you really believe they are affected to the point of having to raise gas prices. Their worth goes from 285,000,000,000 to 284,994,000,000
If you believe they would be affected it is YOU that are duped and YOU that fall for lies from the corrupted business and political world

Do you even know what their profit MARGIN is? No! You have no clue! I posted this last month and got NO REPLY from you or rebuttal! Ask someone you know what the difference is between profits and profit margins. See if they can come up with an answer. Answer? Your profits are the money that's left over from gross revenues after you pay the costs of doing business. Profit margins are the percentage of gross revenues that are left over after you pay those costs. The profit margin for big oil companies like Exxon is about 8 cents for every dollar of revenue. That's less than half the profit margin of other industries like pharmaceuticals. Less than 3% of Exxon’s earnings are from gas sales in the US.

To give you a simple example..... let's say that the total gross revenues for a company for one year equal $1,000,000. This company spent $930,000 to bring in that million. The difference between the $1,000,000 and the $930,000 is $70,000. That's your profit! Divide the $70,000 by the $1,000,000 and you get 0.07 (7%). That's your profit margin. Now let's say that the very next year the company sells twice as much product the second year and brings in $2,000,000. Let's also say that the cost of making those products doubles to $1,860,000. How much money did you have left over? You have $140,000 left over. That's your profit. Divide the $140,000 in profits by the $2,000,000 in gross receipts and what do we have? Hmmmm. It seems the answer is once again 0.07... or 7%! The profits have doubled, but the profit margin remains exactly the same! You don't know what it takes to run a business or you wouldn't make statements like this. Do your research for a change instead of engaging in business and class warfare.

You are so naive that it's scary. We've been over this before and you never replied. Again, I had to go over it again.

By the way, I just did a quick check. It's amazing as hell how Google works! The profit margin for cigarette manufacturers is 19.8%. Cigarettes kill tens of thousands a year. Why not attach the tax breaks for the tobacco companies? People need houses, don’t they? To build houses you need lumber. The profit margin for lumber companies is 17.7%. You want more stats? Take a look at all of the other industries that earn a higher profit margin than the eeeeeeevil oil companies. http://seekingalpha.com/article/269679-oil-industry-profit-margin-ranks-fairly-low-there-are-bigger-fish

The trouble is you don’t make huge political gains among economically uninformed Americans by attacking lumber companies, and you might upset your political base if you attack tobacco companies.

Okay so I guess there's no answer. But we do get more pointless gibberish intended to cover the question

It's like Sarah Palin's newspaper answer... a lot of words but no answer anywhere

I answered you and you moved the goal posts.

Just face it NP, you have absolutely ZERO understanding of even basic economic concepts.

Tex took you to school with his response and you are simply too ignorant of the topic to even realize that he answered your question perfectly!

http://money.cnn.com/magazines/fortune/global500/2011/performers/companies/profits/

Exxon Mobile is the largest company in the world by revenue and the 3rd most profitable according to the Global 500 List. They had over $30 billion of profits in 2010.
Its profit margin is 9%. WalMarts, also one of the biggest companies in the world by revenue, is not even 4%. Apples is 23%.
The Profit margin doesn't necessarily say anything about a companys financial situation.

BubbleBliss wrote:http://money.cnn.com/magazines/fortune/global500/2011/performers/companies/profits/

Exxon Mobile is the largest company in the world by revenue and the 3rd most profitable according to the Global 500 List. They had over $30 billion of profits in 2010.
Its profit margin is 9%. WalMarts, also one of the biggest companies in the world by revenue, is not even 4%. Apples is 23%.
The Profit margin doesn't necessarily say anything about a companys financial situation.

Actually Bubbles, according to the list you linked to, Wal-Mart had revenues of 421,849 billion in 2010 while Exxon-Mobile had revenues of 354,674, making Wal-Mart the largest company in the world by revenue.

Also, to say that Exxon-Mobile is the "3rd most profitable" is not true. They may have the 3rd largest VOLUME (or amount) of profits, but their profit margin makes them FAR less "profitable" than MANY other industries.

The link below illustrates my point. It shows that the major integrated oil and gas industry (the category to which Exxon-Mobile belongs) is FAR down the list of the most profitable industries.

http://www.dailymarkets.com/economy/2011/05/12/oil-industry-profit-margin-ranks-114-out-215/

Just want to set the record straight as words do mean things.

One concession however, you are quite right that a company's profit margins do not necessarily say anything about their financial situation.

dblboggie wrote:

BubbleBliss wrote:http://money.cnn.com/magazines/fortune/global500/2011/performers/companies/profits/

Exxon Mobile is the largest company in the world by revenue and the 3rd most profitable according to the Global 500 List. They had over $30 billion of profits in 2010.
Its profit margin is 9%. WalMarts, also one of the biggest companies in the world by revenue, is not even 4%. Apples is 23%.
The Profit margin doesn't necessarily say anything about a companys financial situation.

Actually Bubbles, according to the list you linked to, Wal-Mart had revenues of 421,849 billion in 2010 while Exxon-Mobile had revenues of 354,674, making Wal-Mart the largest company in the world by revenue.

Also, to say that Exxon-Mobile is the "3rd most profitable" is not true. They may have the 3rd largest VOLUME (or amount) of profits, but their profit margin makes them FAR less "profitable" than MANY other industries.

The link below illustrates my point. It shows that the major integrated oil and gas industry (the category to which Exxon-Mobile belongs) is FAR down the list of the most profitable industries.

http://www.dailymarkets.com/economy/2011/05/12/oil-industry-profit-margin-ranks-114-out-215/

Just want to set the record straight as words do mean things.

One concession however, you are quite right that a company's profit margins do not necessarily say anything about their financial situation.

If you do a google search on the largest company by revenue, it will be Exxon Mobile. I dont know where you got the 354 in revenues from, but Exxon Mobile had revenues of 380 or 360 or something like that.

Look at the link I posted, it says right there it is the 3rd most profitable company. It has 30 billion in profit, making it the company with the 3rd largest profits in the world. In the top ten, you can also find Chevron, Royal Dutch Shell and Petrobras, a brazilian petrol company. Which also makes your point moot. They may not have the high profit margins as other companies, but if you compare that with the amount of revenue they earn, it still makes them highly profitable.

We're talking percentages. Of course they're going to make a ton. But by percentage of their profit margin, it's not that damn big.

Really... who gives a fuck? I never have, even before I got into politics.

Oh yeah.... http://news.investors.com/article/570568/201104281905/seen-and-obscene.htm

So what? Oil companies have the advantage that everybody HAS to buy their products. This is not Apple or BMW we are talking about where you only buy it if you have the money. Fact is that everybody needs oil and gas, which is what makes Exxon, Royal Dutch, etc. so profitable.
Which is the point that the article just doesnt even mention. Oil and Gas is not the same as an IPad because people depend on it!

Corporations are owned by their stockholders. Who owns the stock? The biggest share of the stock in these oil companies (29.5%) is owned by mutual funds. I own mutual funds, buddy! When my mom passed away, she left me her TSA that she had while working for the VA. Guess what? Most of it is in mutual funds! What else is that money into? Pension funds! Those are another 27% share of oil company stocks for you. Who owns those pension funds? People like me and other working class people who own stocks via 401K funds.

Let's tax those funds, huh?

Individual investors? They own 23% of big oil stocks. IRAs account for 14% of shares in big oil. Nope. They make too much money those people who have their money in stocks via oil companies. I get so sick and tired of this class warfare shit. I really do. I could care less but others? It bothers the hell out of them for some silly reason. Oh! Money! Too much money!

I'm not for taxing oil companies, I'm only clearing up the whole proft margin thing, which was your original reason for not taxing oil companies.
And you're not taxing the funds, your taxing the money that is made with the money you invest. There's a difference, ya know