More economics from the DUmmies

[Carl]

iberal N proud  (1000+ posts)         Fri Feb-01-08 12:36 PM
Original message
Anyone who thinks gas prices are not high enough
   

For whatever reason, GO TO HELL!

ExxonMobil sets annual profit record: $40.6B

http://www.usatoday.com/money/companies/earnings/2008-0...

 

Link

There are a few that get how it works but most are in the normal DUmmie "IT`S NOT FAIR!!!" mode.

There are a few feeling their minds being stretched apart trying to keep seperate their long held desire for gas to be expensive so as to bring about a return to 19th century living and their hatred for profits being made.

[Bondai]

Hey DUmmie...there is a little thing called "profit margin" go check it out and then get back to us.....TAY?

[DumbAss Tanker]

With the words 'DUmmies' and 'Economics' in the title, you know you're in for an all-expense paid trip to Fantasy Island.

 

[franksolich]

Oh my.

That's a gusher of a bonfire over there on Skins's island.

I was going to copy-and-paste-and-post, but every single one of the primitive comments is gold.

I suggest, really, that one get out the boat and row over to Skins's island to read the whole thing there.

[jukin]

Clearly pointing out why most of the DUmp is still in their parent's basement. 

[DixieBelle]

Idjits. They don't understand "profit margin". I wonder how they would feel knowing that on average, oil and gas companies rank pretty low in terms of profit margin.

From 2005 - I suspect the same still holds true -

Most financial institutions, such as commercial banks, are routinely more profitable than Exxon Mobil was in its third quarter. For example, Exxon Mobil's gross margin of 9.8 cents of profit for every dollar of revenue pales in comparison to Citigroup Inc.'s 15.7 cents in 2004. By percentage of total revenue, banking is consistently the most profitable industry in America, followed closely by the drug industry.

Altria Group, the maker of Marlboro and other cigarettes, made 22 cents for every dollar of revenue in 2004, and pharmaceutical company Merck made 25.3 cents for every dollar of revenue in 2004.

By other measures, such as profit per employee, return on invested capital and free cash flow, Exxon Mobil is nowhere near a standout.

Oil industry analysts yesterday also pointed out that while times are good for oil companies, one of the reasons is the huge American demand for gas at a time when supply is constrained. And the cost of extracting and refining oil in the coming years is only going to increase, requiring hundreds of billions of dollars of investment. Energy research firm John S. Herold Inc. last month predicted that despite short-term increases in profits, higher costs will probably make many U.S. oil companies less profitable in the next five years, even as their revenue grows rapidly.

"The industry has pressure points, which in time will likely impact its forward momentum," said Herold chief executive Arthur L. Smith.

That momentum was checked a little yesterday. Exxon Mobil's stock closed yesterday at $55.60 a share, down 60 cents.