Re: O/T Gas Price Info (long)

Posted by nballen on May 23, 2007 at 15:13:16 from (198.246.171.252):

In Reply to: Re: O/T Gas Price Info (long) posted by Midwest redneck on May 23, 2007 at 14:26:38:

You're right that "the oil companies" profits are huge - But it sounds like you are only looking at the gross number, not the % profit - it boils down to "How much revenue was required to create that profit"?

I know you are a sharp guy, but it doesn't sound like you are looking at the whole picture.

If I make a profit of $10 on something, it makes a HUGE difference if I spend $10 making it ($20 sale price - $10 inputs = $10 profits) or if I spend $90 making it ($100 sale price - $90 inputs = $10 profits).

In the first example, I have a 50% profit margin, in the second example, I have a 10% profit margin.

Take a look at the "Cost of Goods Sold" - it will be listed in any publically traded company's financial disclosures. There is more to the story than just the "profit".

(By the way, I can't remember anyone complaining when "Big Oil" couldn't hardly pay their bills because gas prices were "cheap".)

Nathaniel

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