Originally posted by loggerbomb:
you cant tell me making one billion dollars in one quarter and having small margins goes hand in hand.



It doesn't take a genius in economics to figure it out.

When you make $500 Billion a year in revenues, even if your margin is just 1%, you made $5 Billion.

As the price of oil has gone up and the price of gas has gone up, the revenues from selling gas has gone up. When the price of what you're selling goes up by double, even if your profit margin stays exactly the same, your profits double. The margins of Big Oil aren't excessive at ~6-9% and are FAR lower than many other companies in a variety of industries and in-line with what the market considers an average, healthy company.

It isn't that complicated.

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