David Eduardo wrote:

"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.


Su the numbers are bad, but they are your numbers?



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


Right

Plonk.


--
Service to my country? Been there, Done that, and I've got my DD214 to
prove it.
Member of DAV #85.

Michael A. Terrell
Central Florida

"Michael A. Terrell" wrote in message
...

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.


Su the numbers are bad, but they are your numbers?

They just are not ROI numbers. ROI is return on investment, meaning,
fundamentally, if you spend capital, what is the rate of return on the
capital. For example, if you buy some machinery, over the life of the asset,
what additional profit will you make vs. the cost.

Profit margin is the percentage that is profit of gross sales. In the case
of Sony, the margin is about 1.56%. In competitive fields, this is not an
unusual margin. That is why the stock is trading around its 5 year high
right now.



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


Right

Yeah, Sony Pictures, Sony Music, etc. And the financial division, which is
significant in Japan.

Plonk.

Truth make you unhappy?

David Frackelton Gleason, posing as the fake Hispanic 'Eduardo', wrote:

"Michael A. Terrell" wrote in message
...

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.


Su the numbers are bad, but they are your numbers?

They just are not ROI numbers. ROI is return on investment, meaning,
fundamentally, if you spend capital, what is the rate of return on the
capital. For example, if you buy some machinery, over the life of the asset,
what additional profit will you make vs. the cost.

Profit margin is the percentage that is profit of gross sales. In the case
of Sony, the margin is about 1.56%. In competitive fields, this is not an
unusual margin. That is why the stock is trading around its 5 year high
right now.



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


Right

Yeah, Sony Pictures, Sony Music, etc. And the financial division, which is
significant in Japan.

Plonk.

Truth make you unhappy?

It sure seems to make you unhappy.

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

Su the numbers are bad, but they are your numbers?

They just are not ROI numbers. ROI is return on investment, meaning,
fundamentally, if you spend capital, what is the rate of return on the
capital. For example, if you buy some machinery, over the life of the asset,
what additional profit will you make vs. the cost.

Profit margin is the percentage that is profit of gross sales. In the case
of Sony, the margin is about 1.56%. In competitive fields, this is not an
unusual margin. That is why the stock is trading around its 5 year high
right now.

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

Right

Yeah, Sony Pictures, Sony Music, etc. And the financial division, which is
significant in Japan.


Not to mention that Sony and Philips are co patent owners on the
Compact Disc, and the Compact Disc player.

As well as the patents on dozens of other products, subsystems or
technical refinements.


Royalties are significant.

On Jun 8, 4:35 pm, "David Eduardo" wrote:
"Michael A. Terrell" wrote in ...



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.

Su the numbers are bad, but they are your numbers?

They just are not ROI numbers. ROI is return on investment, meaning,
fundamentally, if you spend capital, what is the rate of return on the
capital.

Yes, but what does "they", "on", "meaning", "the" and "just" mean, Mr.
Dictionary?

For example, if you buy some machinery, over the life of the asset,
what additional profit will you make vs. the cost.

Profit margin is the percentage that is profit of gross sales. In the case
of Sony, the margin is about 1.56%. In competitive fields, this is not an
unusual margin. That is why the stock is trading around its 5 year high
right now.



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

Right

Yeah, Sony Pictures, Sony Music, etc. And the financial division, which is
significant in Japan.



Plonk.

Truth make you unhappy?

I don't know. What does "make", "unhappy" and "?" mean?