Fact or Fiction in regards to ...
High Oil Company profits….??
How many times have we heard something to this effect .. Exxon Mobil had the highest profits at $40.6 billion. Their revenue came in at a whopping $390.3 billion. Doesn't that get your blood boiling and make you just want to scream? But... Wait now people, let’s be fair and balanced here and add in what they leave out in so many of the reports on this very touchy subject. Here are some figures from The Motley Fool article "Big Oil Ruined My Life" on May 27, 2008:
Using Exxon as an example here is the last 5 years profit margin.
Revenue $390.3 billion $365.4 billion $358.9 billion $291.2 billion $237.0 billion
Net income $40.6 billion $39.5 billion $36.1 billion $25.3 billion $21.5 billion
Profit Margin 2007 10.4% 2006 10.8% 2005 10% 2004 8.6% 2003 9%
You have to look at the profits as a percentage of revenue. They factor in the costs associated with running a business. This must be included to show the true profit percentage. You cannot just see the $40.6 billion dollar figure and not assume that there is a very high costs to doing that amount of business.
Ok, stay with me now, just one more step to put it into perspective....
Take a look at just a few more companies: GE at 12.6%, JP Morgan at 13.2%, Bank of America 12.6%, Microsoft at 27.6%, Berkshire Hathaway at 11.2%, Walmart at 3.4%, and AT&T at 10.1%.
Now if we are going to go on about windfall tax on oil companies, are we going to put a windfall tax on our mutual funds too? No, never going to happen, you never hear a peep about a penalty tax on financial institutions. All this talk about high oil company profits simply draws us away from the real issues and that is our need to become less dependent on foreign oil as well as looking into alternative fuel methods, strengthening of the US dollar and more. It takes our eyes and ears away from the fact that Congress is not dealing with the real issues at hand. The Dems voted to recess rather than deal with it. Take a stand America and demand answers from those in office!
Speak Now America!! we want to hear from you!
How many times have we heard something to this effect .. Exxon Mobil had the highest profits at $40.6 billion. Their revenue came in at a whopping $390.3 billion. Doesn't that get your blood boiling and make you just want to scream? But... Wait now people, let’s be fair and balanced here and add in what they leave out in so many of the reports on this very touchy subject. Here are some figures from The Motley Fool article "Big Oil Ruined My Life" on May 27, 2008:
Using Exxon as an example here is the last 5 years profit margin.
Revenue $390.3 billion $365.4 billion $358.9 billion $291.2 billion $237.0 billion
Net income $40.6 billion $39.5 billion $36.1 billion $25.3 billion $21.5 billion
Profit Margin 2007 10.4% 2006 10.8% 2005 10% 2004 8.6% 2003 9%
You have to look at the profits as a percentage of revenue. They factor in the costs associated with running a business. This must be included to show the true profit percentage. You cannot just see the $40.6 billion dollar figure and not assume that there is a very high costs to doing that amount of business.
Ok, stay with me now, just one more step to put it into perspective....
Take a look at just a few more companies: GE at 12.6%, JP Morgan at 13.2%, Bank of America 12.6%, Microsoft at 27.6%, Berkshire Hathaway at 11.2%, Walmart at 3.4%, and AT&T at 10.1%.
Now if we are going to go on about windfall tax on oil companies, are we going to put a windfall tax on our mutual funds too? No, never going to happen, you never hear a peep about a penalty tax on financial institutions. All this talk about high oil company profits simply draws us away from the real issues and that is our need to become less dependent on foreign oil as well as looking into alternative fuel methods, strengthening of the US dollar and more. It takes our eyes and ears away from the fact that Congress is not dealing with the real issues at hand. The Dems voted to recess rather than deal with it. Take a stand America and demand answers from those in office!
Speak Now America!! we want to hear from you!
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