Quote:
Originally Posted by monkeyluis
That's what I was thinking. Technically they're making a boatload of cash. I always think of Bezos jumping into a cash pool & swimming through it.
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They actually operate on extremely slim margins, so every penny pinched here and there helps a lot.
From their latest figures:
Quote:
Net sales increased 44% to $10.88 billion in the third quarter, compared with $7.56 billion in third quarter 2010. Excluding the $371 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 39% compared with third quarter 2010.
Operating income was $79 million in the third quarter, compared with $268 million in third quarter 2010. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $14 million.
Net income decreased 73% to $63 million in the third quarter, or $0.14 per diluted share, compared with net income of $231 million, or $0.51 per diluted share, in third quarter 2010.
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So $10.88 Bn in turnover, but only $63 Mn in income.
Oh, and the figures in the original post are pretty meaningless not only because they are just guesses at the manufacturing cost, but because manufacturing cost isn't the only cost! It ignores all transportation, wharehousing and retail costs.