ExxonMobil announced $10.7 Billion first quarter earnings earlier this month. Obama is outraged. I do not understand.
This $10.7B was made off of $114B in Revenue, which is only about 9%. Apple made $6B on revenues of $24.7B, which is about a 25% profit margin. So even though the number appear big, they also had HUGE revenues, and the profit margin is not so outrageous. Don't get me wrong $10.7B is a ton of money to earn, but you have to look at the whole picture and understand how much money and resources went into earning that amount.
Furthermore, XOM makes money because they have a conservative business model. They have ZERO debt, they are incorporated in the United States, which means they pay a lot of taxes and pay for the government which is a non-revenue generating COST CENTER.
The criticism should be on the banks that used tax dollars to be bailed out because of poor business decisions and inability to mitigate risks. It appalls me to hear the ignorance of so many media reports and news stations. They should be HAPPY that companies are making money, employing individuals, and stimulating the economy. (They are a great employer)
No wonder Americans are becoming poorer and have no savings, the incentives are not there for individuals or for businesses. You are rewarded by the government if you run your business poorly and leverage it with high debt ratios and punished if you are conservative and keep cash on hand to cover your costs. It's just pathetic.
(These are all personal statements and personal position and are not made on behalf of ExxonMobil)
1 year ago
