Posted on 06/03/2019 7:12:54 AM PDT by Yardstick
The average person is also now a public school-indoctrinated collectivist moron
I don’t doubt this. This is all they have been told in school or by the media. Why would they think anything else?
That’s what I learned at Temple U.
Profit about 7%.
2015 Article but I suspect, still pretty accurate. The point is . The NEA failed AGAIN and the MSM succeeded AGAIN!!
“Average people” who have never owned a business or been responsible for a P&L.
Even with a profit, return on investment can still suck.
Grocery stores have among the slimmest profits out here.
Tax prep and bookkeeping are among the highest profit.
What is the number for Apple?
Yep, and as the writer points out, it makes people susceptible to supporting burdensome taxes and regs on business because they imagine there’s lots of cushion.
A company making between 7 and 10 percent is doing okay, 17 percent is ideal.
I’ve always said these people should hate UNIVERSITIES more than corporations.
At least Corps. add to the well-being of the masses.
How about this? Who makes more money on the sale of gasoline, evil money-grubbing oil companies, or the government?
And the Marxist universities
tell them to hate corporations.
I’m a bit surprised that the average person doesn’t think they average 473% profit.
The number of people I know who are convinced that “investors\businessmen(women), etc” have a “secret stash (Uncle Scrooge-style)” in their basement or otherwise squirreled away is frightening! I know some supposedly well-educated people who thinks this!
Economic & business ignorance in this country is overwhelming. No wonder “Romney’s 47%” is correct number.
ML/NJ
I know somebody who runs a bookkeeping business. She works on her own running it out of her house. Her main expense is for office supplies. She has no employees, or office rent to pay in an office building.
It sure seems that most people are clueless about profit margins, or the various expenses involved in running a business.
My company would be quite happy to see 7%. Our CEO often says to us, “you know we are supposed to be a for profit company.”
Our employees, competitors, suppliers, and governments all notice if our profits get out of line and corrections follow.
"Typical business" is of course a big fudge factor. It would be interesting to disaggregate it and ask people about specific sectors. Or to categorize businesses by degrees of risk. Or by essentiality of the product or service provided. Or by the intensity of regulation.
I'd be particularly interested in what figure people chose for "businesses that enjoy monopoly status by virtue of government regulations or licenses." Or words to that effect to characterize the radio and tv industry license to exclusive use of designated bandwidths. One of my humble proposals over the years has been to put broadcast licenses up for auction every five years. Or even better, take each broadcast license (i.e., the exclusive use of a designated bandwidth) and open it up to an annual lottery in which every U.S. citizen would be automatically entered. Hey -- the bandwidth belongs to us, not to the broadcasters. Let the broadcasters buy it from the lottery winners, subject to whatever usage restrictions the winner wishes to impose.
Im not surprised by this. Its what the people have learned from the MSM.
OTOH, the author of the article plays way to loose with the term profit margin, That term is normally used to specify the markup of goods sold from the the cost of those goods. Or something similar.
Bottom line profit is what counts. What counts even more is cash flow. Good accountants and tax attorneys can help push your taxable profit down and your cash flow up.
In the end it is consistent after taxes cash flow that determines the financial health of a company.
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