"Michael A. Terrell" wrote in message
...
David Eduardo wrote:

That is because it is not "ROI."

ROI is "return on investment" or the payback on invested capital. ROI,
simplified, is how much you make each year on each dollar invested. Often
companies are measured in return on assets, as opposed to investment
capital.

Sony's $1.5 billion profit vs. $66 billion in sales gives you the profit
margin, which is just about 2%.

Supermarkets often have a margin below 1%. The profit is on volume. Other
business may have margins of 20% to 25%, but these are usually service
companies, not manufacturers. GE has a high margin, around 12%. Honda has
a
margin of 5%.


You can't really be stupid enough to compare a car company, a
supermarket chain, and an electronics manufacturer's ROI can you?

Those agre gross margins, not ROI. When you understand the difference
between margins and ROI (hint... one is a P&L metric and the other is a
balance sheet one) rejoin the conversation.

P.S. A huge part of Sony´s income is not from consumer electronics.