Gaius
42
How much would it be up if they hadn’t used their profits to buy back stock?
Jezcoe
43
The myth of infinite growth has hurt many companies.
Being very profitable isn’t enough… they must be wildly profitable.
This is why labor unions are needed.
1 Like
LucyLou
44
“Brutal” is no where to be found though.
Gaius
45
Incorrect.
"Profitless: is nowhere to be found (but I did not say that. I said the math is brutal.)
“Taking a loss” is nowhere to be found (but I did not say that. I said the math is brutal.)
“Stock doing down” is nowhere to be found, (but I did not say that. I said the math is brutal)
“Company in touble” is nowhere to be found (but I did not say that. I said the math is brutal.)
The 14-to-1 math is brutal, and that is what I said.
Is my phrase “The Brutal Math of Narrow Profit Margins” really genuinely that hard to understand?
Guvnah
46
The libs are extra trollish today.
2 Likes
Gaius
47
Yeah but we should keep the around.
Once in a while they provide thoughtful input.
Gaius
48
A local apple-picker picked 1% fewer apples today
he lost 14% of his wages. MAN that was brutal.
(Notice I didn’t say he took a net loss etc., just that the math is brutal.)
Gaius
50
Oh, FedEX also report earnings today.
Revenue dropped 0.5% leading to a 26.5% drop in profits.
Utalbray!
.
Here is what I found with a quick internet search for the average profit margin for groceries.
The average profit margin in grocery stores is between 1 percent and 3 percent. Conventional grocery store chains have an average profit margin of about 2.2%. This means that for every dollar of sale a grocery store has, they make 2.2 cents of profit. However, natural, organic, and gourmet stores tend to have profit margins in the 5-10% range. Grocery stores make money on volume, so they’re counting on customers to buy many items per shopping trip.
I’ve seen and heard it reported that grocery margins are razor thin and Kamrad Kamala’s whacked out idea of government pricing control would put us all in bread lines. It seems to me the only price gouging going on at the supermarket are the natural/organic items and those that go to gourmet stores, which are typically leftist liberal elites.
1 Like
Guvnah
52
And for every dollar that “walks” out of the store via shoplifting, the store has to do $50 in sales to pay for it. (And when a guy shoplifts a $20 bottle of laundry detergent, it takes the profit from the next $1000 in sales to compensate.)
But hey … $950 in shoplifting is now not a serious issue according to some local laws. 
1 Like
Gaius
53
To be in the S&P 500 index a company needs to be normally profitable
(Outside the S&P ~40% of corporations are not.).
37 of those 500 companies have profit margins > 30%.
~10 of them are listed below.
88 of those companies have profit margins below 5%.
~20 of them are also listed
For them the brutal math applies.
A misguided policy from inside the beltway could wipe out a lot of profit, a lot of jobs, and a lot of grandma’s retirement fund.
(All profit margins as per most recent fiscal year)
Gaius
54
It works in both direction btw.
Darden’s Restaurants, owners of Olive Garden, Longhorn Steakhouse, Ruth’s Chris etc. also reported: Their same-store (gross) sales rose 1% this Q vs same Q last year
causing their same-store profit to rise 6.5%.
Hmm what’s the antonym of “brutal?”
Well whatever it is, this serves as an example there is a HUGE impact between
- a good policy that causes a 1% upswing in sales,
-vs-
- a bad one, which causes a 1% downturn.
Gaius
56
Imagine what would happen if a misguided policy from Washington
led to even a small drop in revenue.
.
.
Yup a person sure could cause a lot of damage by demonizing corporations.
2 Likes
