Wal-Mart being deceitful?! - Page 2

6SpeedTA95 · 10-22-2006, 12:43 AM

Originally Posted by WickedLou9

I hate it when people use that arguement. an absolute profit margin percentage is stupid. It depends entirely on the size of the business as to it's meaning. The company I work for grew 1400% in 2004 and 400% in 2005. guess what. As we get bigger the growth rate shrinks. a small business with 5 employees making a 3% profit margin is barely staying afloat, probably not even.
Walmart is making billions in profit. still 3%. Real dollars DO matter.

You think margins are worthless?

Margins are VERY important regardless of size. Margins or lack there of in the case of walmart illustrate just how fragile the retail industry is. 3.5% in retail is decent, 3.5% in the rest of the business world is atrocious which is part of what makes retail so volitile.

Diesel66 · 10-22-2006, 02:40 AM

Originally Posted by WickedLou9

I hate it when people use that arguement. an absolute profit margin percentage is stupid. It depends entirely on the size of the business as to it's meaning. The company I work for grew 1400% in 2004 and 400% in 2005. guess what. As we get bigger the growth rate shrinks. a small business with 5 employees making a 3% profit margin is barely staying afloat, probably not even.
Walmart is making billions in profit. still 3%. Real dollars DO matter.

WickedLou9 · 10-22-2006, 11:04 AM

Originally Posted by 6SpeedTA95

You think margins are worthless?

Margins are VERY important regardless of size. Margins or lack there of in the case of walmart illustrate just how fragile the retail industry is. 3.5% in retail is decent, 3.5% in the rest of the business world is atrocious which is part of what makes retail so volitile.

margins do matter, but they can not be considered in a vaccuum. There are many other factors that need to be considered. Size of the business and type of business are amoung them. You can not simply look at a profit margin and assume that it's OK based on only the percentage. Especially when you are trying to consider when they can afford to do something.

KatKanPlay · 10-22-2006, 11:52 AM

Originally Posted by lew

I guess you don't like money or profit.

Quit whatever job you have. Or, work for free. Or, give 100% of your money away.

Ridiculous statement!! I dont like corporate welfare and I have post plenty to substantiate that Walmart is a huge drain on our tax system with a minimum of social responsibility.

The rest of your post is just as ridiculous...

Diesel66 · 10-22-2006, 12:18 PM

Originally Posted by KatKanPlay

Ridiculous statement!! I dont like corporate welfare and I have post plenty to substantiate that Walmart is a huge drain on our tax system with a minimum of social responsibility.

The rest of your post is just as ridiculous...

According to you they received $1 bil in govt subsidaries. But they also paid $5 bil in income taxes alone and employ millions (plus all those who built the buildings).

How can a company that contributes 4 billion more then they received on welfare ?

KatKanPlay · 10-22-2006, 12:19 PM

Originally Posted by Diesel66

According to you they received $1 bil in govt subsidaries. But they also paid $5 bil in income taxes alone and employ millions (plus all those who built the buildings).

How can a company that contributes 4 billion more then they received on welfare ?

Got a breakdown on that $5 billion?

Diesel66 · 10-22-2006, 12:22 PM

Originally Posted by KatKanPlay

Got a breakdown on that $5 billion?

http://www.walmartstores.com/Files/2005AnnualReport.pdf

page 42-43

4.2 bil to the fed.
640 mil to various states and local communities
570 mil to international taxes.

Effective tax rate 34%.

Kytro · 10-23-2006, 03:27 AM

They should get nothing from any government for any reason.

lew · 10-23-2006, 10:04 AM

Originally Posted by KatKanPlay

Ridiculous statement!! I dont like corporate welfare and I have post plenty to substantiate that Walmart is a huge drain on our tax system with a minimum of social responsibility.

The rest of your post is just as ridiculous...

Walmart is a huge drain on our tax system? By employing millions of people?

It has minimum social responsibility?

garbagemanlb · 10-23-2006, 11:43 AM

Originally Posted by lew

Walmart is a huge drain on our tax system? By employing millions of people?

It has minimum social responsibility?

How many of those 'millions' are on public healthcare or other government aid programs due to their abysmally low wages?

hsmith · 10-23-2006, 12:35 PM

Originally Posted by WickedLou9

I hate it when people use that arguement. an absolute profit margin percentage is stupid. It depends entirely on the size of the business as to it's meaning. The company I work for grew 1400% in 2004 and 400% in 2005. guess what. As we get bigger the growth rate shrinks. a small business with 5 employees making a 3% profit margin is barely staying afloat, probably not even.
Walmart is making billions in profit. still 3%. Real dollars DO matter.

hsmith · 10-23-2006, 12:36 PM

Originally Posted by WickedLou9

margins do matter, but they can not be considered in a vaccuum. There are many other factors that need to be considered. Size of the business and type of business are amoung them. You can not simply look at a profit margin and assume that it's OK based on only the percentage. Especially when you are trying to consider when they can afford to do something.

So, would you invest in a company making a 3% return, or would you invest in one making a 10% return?

hsmith · 10-23-2006, 12:37 PM

Originally Posted by garbagemanlb

How many of those 'millions' are on public healthcare or other government aid programs due to their abysmally low wages?

Walmart pays on average $9.50/hr to their workers. That is $39520 for a two person working household.

$40,000 seems pretty decent to me for a household of unskilled labor.

Want to get paid more, get a job that requires more skill than a trained monkey could do.

WickedLou9 · 10-23-2006, 12:49 PM

Originally Posted by hsmith

So, would you invest in a company making a 3% return, or would you invest in one making a 10% return?

I would never make an investment decision based soley on profit margin. That would be retarded.

hsmith · 10-23-2006, 12:53 PM

Originally Posted by WickedLou9

I would never make an investment decision based soley on profit margin. That would be retarded.

So, two identical companies, you wouldn't choose the one with the higher profit margin?

WickedLou9 · 10-23-2006, 01:00 PM

Originally Posted by hsmith

So, two identical companies, you wouldn't choose the one with the higher profit margin?

If I had two companies, and I looked at them both and considered many other characterisitics and both companies were identical in every other way, then yes I would choose the higher profit margin.

But profit margin alone is a very poor measure of investability.

To this point, look at Walmart.. it's margin is what 3.5% they said?
Then look at Verizon.. It's profit margin is over 10%.

However S&P ranks Wal-Mart a 5 star strong buy. ( on a scale of 1-5 stars )
Verizon is only a 3 star..which means "hold".

I found another company with a margin over 10% and it was ranked 2 stars.. which means sell.

There are a host of other factors that you need to look at.

Check out the attachment I just put on here.

Diesel66 · 10-23-2006, 01:52 PM

Originally Posted by garbagemanlb

How many of those 'millions' are on public healthcare or other government aid programs due to their abysmally low wages?

how many would be on public health care and govt aid if Walmart didnt employ them ?

Worst case we spend 1 bil and make ~4 bil in profit through taxes and unknown number of jobs plus everyone benefits from lower prices for common goods.

WickedLou9 · 10-23-2006, 02:02 PM

Originally Posted by Diesel66

how many would be on public health care and govt aid if Walmart didnt employ them ?

Worst case we spend 1 bil and make ~4 bil in profit through taxes and unknown number of jobs plus everyone benefits from lower prices for common goods.

most walmart employees don't get health care. only the full time salaried workers and they are trying to convert more full time workers to part time so they can provide health insurance for even fewer workers/.

Diesel66 · 10-23-2006, 02:06 PM

Originally Posted by WickedLou9

most walmart employees don't get health care. only the full time salaried workers and they are trying to convert more full time workers to part time so they can provide health insurance for even fewer workers/.

So ignore the question and bring up a completely different point.

Does Walmart provide health care to workers that wouldnt get it if they worked similar jobs at Kmart, Target, etc.... of course not. It is too expensive to pay for health care for unskilled labor.

WickedLou9 · 10-23-2006, 02:08 PM

Originally Posted by Diesel66

So ignore the question and bring up a completely different point.

Does Walmart provide health care to workers that wouldnt get it if they worked similar jobs at Kmart, Target, etc.... of course not. It is too expensive to pay for health care for unskilled labor.

maybe. but if walmart is the biggest single employer in the country, then walmart can certainly put a burdon on the tax payers by not providing health insurance to more and more of it's workers.