Profit margin

[JumboShrimp]

This may be a stupid question.  Here are 2 variables:

Revenue of 17 924 938 797 USD
Profit of 7 141 328 388 USD

What is the profit margin?

[Sami]

http://en.wikipedia.org/wiki/Profit_margin  ?

[JumboShrimp]

http://en.wikipedia.org/wiki/Profit_margin  ?

Well, that's what I thought.  That would mean:

7141328388 / 17924938797 = 39.84%

But my last stats from MT7 shows a profit margin of 25.16%

Is there another variable AWS is looking at?

[freshmore]

Could that profit have included returned money from taxes.

[JumboShrimp]

Could that profit have included returned money from taxes.

The profit margin shown by the system is lower than what it should be, so something must be subtracting from the profit.  Since the last quarter was Q3, there is no refund, but there are tax withholdings.

I don't have the income statement available to me any more to see if the taxes influenced the calculation...

So I guess that the "Net Profit" might be after tax payments.  But OTOH, I don't recall some crazy profits on Q1, when there is typically tax refund...

I wonder if it would be better for the system to show pre-tax profits, to avoid these fluctuations.

[schro]

I don't have a screen grab of my last quarter earnings, I had a tax withholding of about 4.2 billion during the quarter. My final game stats, per the stats page, show I should have a 59% profit margin, however, it is reporting in at 45%. When I subtract my tax payments from the profit number, it lands right where it should be. Therefore, it seems that the profit margin calculation would be as follows -

(Pre Tax Income minus Tax Withholdings) / Total Revenue = Profit margin

[JumboShrimp]

I don't have a screen grab of my last quarter earnings, I had a tax withholding of about 4.2 billion during the quarter. My final game stats, per the stats page, show I should have a 59% profit margin, however, it is reporting in at 45%. When I subtract my tax payments from the profit number, it lands right where it should be. Therefore, it seems that the profit margin calculation would be as follows -

(Pre Tax Income minus Tax Withholdings) / Total Revenue = Profit margin

Yup, that's what it seems to be.  I recall significant enough tax withholdings during the quarter for my own airline...

BTW, congrats on a very strong finish, and on #1 in profitability...

BTW #2:  Too bad we never get to see the final alliance score for the game, since this one category (profitability) gets displayed the day after the end of the quarter.  Perhaps, the game worlds should end on Tuesday midnight, after the end of the quarter, so that there would be 1 game day when the final score would be seen.

[alexgv1]

So the game (or the players?) need to distinguish between gross and net, at the end of the day?

[Jona L.]

So the game (or the players?) need to distinguish between gross and net, at the end of the day?

The game just gives you the final figures you have to do the maths yourself. Which sucks, if you can't even precalculate your TAX payments as the system always does something different. I.e. sometimes I don't pay taxes for half a year, and sometimes it gets deducted semi-monthly. And I doubt, sami, that you have modeled corruption... (tax returns are a bit easier to calculate though ).

But would be nice, if a big part of the background maths would be thrown to the surface, and the player can get more info through the financial overview. Maybe keep the current one, and add the sub page "detailed finances" or so, that people don't get overwhelmed with information, but yet can retrieve it if they want.

cheers,
[SC] Jona L.

[Sanabas]

You can calculate your tax deduction every month without any problem at all, as accurately as you'd like, including to the exact $. For anything that matters, like tax deductions/returns, the system is completely transparent, and you can know in advance what the result will be.

For stuff that doesn't matter, like profit margin % on the stats page, it is not so obvious. There is clearly some stuff that is/isn't counted towards revenue, and towards profit, but it's pretty much just a guess about what that stuff is. Looking at both my previous quarter income statements, I haven't been able to get the % exactly the same as the stats page says.