Quote Originally Posted by WacoWildcat View Post
Saw on the news last night. Record breaking profits for BP and Shell in the first quarter. This maybe because of the higher demand but were talking billions here.
BP

Market Cap (intraday)5: 229.56B

Profitability
Profit Margin (ttm): 7.33%
Operating Margin (ttm): 9.48%

Management Effectiveness
Return on Assets (ttm): 7.43%
Return on Equity (ttm): 23.38%

When you have ~1/3 Trillion dollar company, you better be making billions. The news always just reports the total record breaking profits, which is not the total picture. Reporting that BP made 7.43% return on assets, just doesn't have the same effect.

If I told you I made $100,000 last year, you really shouldn't have any idea whether I did good or bad, without knowing how much I have tied up in the business. If I had the same profit margin BP did, I would have to have $1.345 Million tied up in the business, to make that $100,000. Go try to get a $1.345 mil loan at the bank and show them your business plan that you can make $100,000 per year, and see what they say.