Quote:
Originally Posted by compJockey
Yes, that is right.
I chose Revenue because that is what their annual report lists plainly enough.
If they also listed where the majority of their money was spent, I missed it.
But your argument might carry some weight if we knew that information and it was simply a case of increasing usage (customers).
Steady?
Nearly multiplied revenue by 5?
Maybe unitedhealth is an outlier.
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Total revenue is completely irrelevant if that's the only figure you're going to quote.....the cost to operate has to be subtracted from it. You can have revenue of a trillion dollars but, if your operating costs were 1.1 trillion, that trillion in revenue means you ended 100 billion in the red.
There are pages of accounting figures in an annual report. If you're not sure where to find what their expenses and operating costs were, where do you get off insisting that they had excessive profits that have been hidden due to the large bonuses they paid out to their executives.
You don't increase your profit margin as your sales volume increases.....you don't have to.....if anything you decrease it, so you can continue to have increases in sales volume (because you've lowered your rates and made yourself more competitive). You don't need to make as much profit per unit if you're selling twice as many units each year compared to the previous year. You're sales volume doesn't increase every year because you charge more money for the product you sell than anyone else, that also sells the same product.
Yes, they had steady increases in sales volume over ten years (actually their was a big jump in 2006) but, what does having almost a 500% increase in sales volume over 10 years prove without citing any other figures. What if 10 years ago you're annual gross income (before taxes) was $10,000 and since then it's gone up 500%....so now you're making $50,000. Does that mean you're rich....that you're income is now excessive? Of course not, it depends on how much you worked, what you're occupation was and what expenses you had then compared to now. Let's say 10 years ago you were still in high school so, you lived at home (and mom and dad paid for everything) and you worked part-time in the arcade at the mall....and now you have a college degree, you're married with three kids (so if you're wife works you have to pay for day-care for three children), you have a mortgage, two car loans and all the other bills you get in life (utility bill, groceries, etc.)....are you rich....is your gross income excessive because it's increased 500% in 10 years?
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