How much is a fair profit?
Lots of talk in the media about Exxon’s earnings for the most recent quarter. The New York Times even pointed how how much money Exxon made per minute. Some politicians are even talking about a windfall profits tax. All this begs the question: How much is a fair profit?
If you want to have some interesting discussion you could begin with a little matching quiz that I put together below. Scroll on down for the answers.
Match the company with its recently announced quarterly profit:
Amazon 3.2% Exxon 3.9% Microsoft 8.45% Wal-Mart 30.5%
Sources: Amazon – http://www.reuters.com/article/businessNews/idUSN2344993420080724 Exxon – http://www.nytimes.com/2008/08/01/business/01oil.html Microsoft – http://www.microsoft.com/presspass/press/2008/apr08/04-24fy08Q3earnings.mspx Wal-Mart – http://www.businessweek.com/bwdaily/dnflash/content/may2008/db20080513_718248.htm
ANSWERS: Amazon 3.9% (Revenue $4.06 billion; earnings $158 million) Exxon 8.45% (Revenue $138.1 billion; earnings $11.68 billion) Microsoft 30.5% (Revenue $14.45 billion; earnings $4.41) Wal-Mart 3.2% ( Revenue $94.1 billion; earnings 3.02 billion)