[quote]tmay11 wrote:
[quote]countingbeans wrote:
[quote]pittbulll wrote:
In my opinion to see the whole profit of shell oil would be such a major undertaking it would not fit in one book let alone 1 paragraph . You would have to look at Gross profits and every line of expenditures to see the true profit[/quote]
If only public compaines had to compile their financial information into statements, and if only we had professionals that audited those statements to vouch for their accuracy…
Oh what a world we would live in.
Imagine[/quote]
Thank you beans.
Pitt, what you are saying is exactly what is done.
Return on assets, return on equity etc. are just different ways of looking at the same thing. You seem to be suggesting that you would have to “add” them together to get some sort of “true profit” figure. This is very bizarre and shows just how far outside any area of expertise of yours you are when discussing this.
That you’re unaware (or were) that public companies compile public statements is also very telling.
Net Income = Total Sales - Total expenditures
Profit margin = Net Income/Sales
Return on Equity = Net Income/Equity
For the last 12 months Shell had net income of 26B. They had sales of 476B. 26/476 = 5.5%
Return on Assets was 7%, Return on Equity was 15 %. That doesn’t in any way change their profit margin though…
Here is a link to their 2011 Annual report in PDF.
[/quote]
I wonder how you knew I did not know what a ratio was ?
pittbulll wrote:
some proof please and how much time is that investment for if it is a day (That’s pretty fucking good) if it’s for a year ( not so good )
Ummm…you do know how ratios work, don’t you?
That percentage is total return on investment regardless of how long the period is measured over.
Obviously, total revenue over one day is much less than revenue over a year.
that was a conversation between lifty and me on page 2
I am no expert but I am guessing a Ratio was designed for an investment tool , not a statement of earnings
