Multiplayer tycoon game for real business leaders!

Play Business Game!
Русский Українська Español Deutsch
Login Password Sign Up / Login Forgot your password? English
Search
virtonomica

List of forums -> Free communication (everything except serious game talk) -> Profitability of Companies and curious cases in companies' asset growth

Humor, love, politics, economics, culture and everything that is not about tycoon games

Voting:  

Should we have a chart showing the profitability of companies as percentage of turnover?

Voting duration:

Start: 19.02.2013, 17:55

End date: Not specified

Voting continues
- Yes
 
20
- No
 
1

You have not voted yet



Topic:

Topic created : 19.02.2013, 17:55

Ehabov
Five years with Virtonomics Winner of the Leaders Contest in the nomination Quality label Winner of the Contest for Managers in the nomination Raw Material Base Winner of the Contest for Managers in the nomination "Knowledge is power!"
m:
Ehab Holdings
 
Out of curiosity, and probably because I had too much time on my hands, I ran a simple analysis on some of the big companies listed in the chart, and some random companies in the top 500 and even outside and found some curious results.
 
Method: I calculated the delta in assets between today's update and yesterday's update and that will give us the profit the company achieved, and then i divided that profit by turnover. This should give us the profitability of the company in %.
 
What to expect is basically is a percentage ranging from a MAX of 100% (meaning the company almost spent nothing compared to its sales, which is almost impossible considering you have administrative cost of employees, rent and management) to percentages in Minus; which will mean that the company is incurring costs higher than its sales.
 
Below are some of the companies I surveyed
 
Mico Inc:
Turnover: 141.4B $
Profit (Delta in Asset value): 81B $
Profitability: 57%
 
Viking Worldwide
Turnover: 117B $
Profit (Delta in Asset value): 51.8B $
Profitability: 44%
 
KT Resource
Turnover: 1.5B $
Profit (Delta in Asset value): 1.64B $
Profitability: 105%
 
JDS
Turnover: 372M $
Profit (Delta in Asset value): 1.2B $
Profitability: 324%
 
PAO
Turnover: 5B $ (last update it was Zero!!!)
Profit (Delta in Asset value): 4.55B $
Profitability: 91%
 

Now the question is, how can a company like JDS earn more profit than it's actual sales in one update! Actually to be specific almost 3 times more. I understand the president of the companies might have bought cash with game points, but that would mean he used a minimum of 180 game points... Is that possible? And if it is, does that affect the competitiveness of the game and hence the fun?!
 
In the case of the last company, PAO, it had no sales in the previous update, and had exactly 5B $ during this update with almost 91% of profit. The company is listed as an investment fund.. I for one don't know what that means, and I will appreciate it if someone can explain to me Well
 
Finally, it might be useful if the developers decide to add another chart showing profitability of the companies. This shows how healthy the company is, and how successful its management is.
 
What do you think?
 
   

  • Page:
  • 1
Message list:  

19.02.2013, 19:56

Jane84
Witch's brew Bat Head of Frankenstein Witch's hat Ghost Macedonian Silver amphora Bronze amphora of Heraklion Cocktail
Suitcase Air passage Rubber ring Broker-Yard Tournament Prizewinner Participant's tiara of Miss Virtonomics 2012 contest Shamanic Mohawk The winner of the Industry Competition The winner in the nomination Your Way to success of the Industry Competition
The winner of the Breadwinner nomination of the Industry Competition The winner of the Best trade mark nomination of the Industry Competition The winner of the Storm of regions nomination of the Industry Competition The winner of the Standard of Virtonomics nomination of the Industry Competition The best player of the qualification for the quarterly Industry Competition Winner of the Leaders Contest in the nomination Tender mania Winner of the Leaders Contest in the nomination Quality label Winner of the Leaders Contest in the nomination Markets Storm
Winner of the Contest for Managers in the nomination "Knowledge is power!" Winner of the Contest for Managers in the nomination Consumer Goods Winner of the Contest for Managers in the nomination Trade Turnover Winner of the Contest for Managers in the nomination The Standard of Virtonomics Three years with Virtonomics
Three years with Virtonomics
 
PAO might have technology sales. Investment fund is a company with no subdivision and having more than $10 bln cash.
 
Also increase or decrease of assets does not reflect the profitability of company. Sum of assets depend on many other things like average wholesale market qualities and prices etc. 
 

19.02.2013, 20:34

Ehabov
Five years with Virtonomics Winner of the Leaders Contest in the nomination Quality label Winner of the Contest for Managers in the nomination Raw Material Base Winner of the Contest for Managers in the nomination "Knowledge is power!"
m:
Ehab Holdings
 
Jane84
PAO might have technology sales. Investment fund is a company with no subdivision and having more than $10 bln cash.
 
Also increase or decrease of assets does not reflect the profitability of company. Sum of assets depend on many other things like average wholesale market qualities and prices etc.

OK, thanks Jane. Now it is clarified.
 
Now, don't you think it is helpful if we had the profitability chart? 
 

19.02.2013, 20:36

Ehabov
Five years with Virtonomics Winner of the Leaders Contest in the nomination Quality label Winner of the Contest for Managers in the nomination Raw Material Base Winner of the Contest for Managers in the nomination "Knowledge is power!"
m:
Ehab Holdings
 
Ehabov
Jane84
PAO might have technology sales. Investment fund is a company with no subdivision and having more than $10 bln cash.
 
Also increase or decrease of assets does not reflect the profitability of company. Sum of assets depend on many other things like average wholesale market qualities and prices etc.

One more thing.. How does an investment fund company make money? If it doesn't have subdivisions it can not sell... Even technology, you will need labs to invent them.
 
 

20.02.2013, 00:37

JustNash
Twelve years with Virtonomics Jubilee Ten Shagreen, VII-XV places Shagreen, VII-XV places Macedonian common amphora Common amphora of Heraklion The winner in the nomination Your Way to success of the Industry Competition Winner of the Contest for Managers in the nomination "Knowledge is power!"
One year with Virtonomics
Основатель г.Хасселт Jewelry Loupe Founder of Carcassonne Twelve years with Virtonomics Belgium soccer ball Traskor Swedish standard Viking helmet
Dalahast Deer horns Ingvar Kamprad Order Mathematic teacher Compass Festive glasses Jubilee Ten Silver Ten
For contribution to the development of Virtonomics The tender collider, VII-XV places The tender collider, VII-XV places The tender collider, VII-XV places The tender collider, IV-VI places The tender collider, IV-VI places World Cuisines, VII-XV places World Cuisines, VII-XV places
World Cuisines, IV-Vi places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places
Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, IV-VI, places
Shagreen, IV-VI, places Shagreen, IV-VI, places Shagreen, IV-VI, places Shagreen, IV-VI, places Shagreen, II-III places Shagreen, II-III places Shagreen, II-III places Shagreen, II-III places
Platinum sponsor of the Contest for Tycoons Platinum sponsor of the Contest for Tycoons Platinum sponsor of the Contest for Tycoons Platinum sponsor of the Contest for Tycoons Platinum sponsor of the Contest for Tycoons Platinum sponsor of the Contest for Tycoons Platinum sponsor of the Contest for Tycoons Platinum sponsor of the Contest for Tycoons
Platinum sponsor of the Contest for Tycoons Founder of the city Sikasso Macedonian Silver amphora Bronze amphora of Heraklion The winner of the Industry Competition The winner in the nomination Your Way to success of the Industry Competition The winner of the Storm of regions nomination of the Industry Competition The winner of the Standard of Virtonomics nomination of the Industry Competition
Three years with Virtonomics
l:
Premium Brands
m:
Premium Brands
 
you might have invented the techs prior to selling off all subdivisions...
 
As for your method of calculating profitability: it is a good proxy and I use it myself to measure myself. But as Jane stated, there can be significant fluctuations. Let's say I have an ag farm that produces 2M Q10 grain a couple of weeks per year. Now, if I don't do anything with that grain, it offers 0 turnover.
 
Now at some point I'm going to have a stock of say 100M grain. If the value of that increases by 10$ a piece, my assets will grow by 1Bn...
 
By the way: JDS is Diska's company, right? Very we! 
 

20.02.2013, 14:12

Ehabov
Five years with Virtonomics Winner of the Leaders Contest in the nomination Quality label Winner of the Contest for Managers in the nomination Raw Material Base Winner of the Contest for Managers in the nomination "Knowledge is power!"
m:
Ehab Holdings
 
Diska! I think I heard that name before.... he/she sounds like a big shot around here Well .... Am I right in my assumption? Well 
 

8.03.2013, 09:29

Last time edited : 8.03.2013, 09:40

wolf85
Three years with Virtonomics
Appolo in turquoise The winner in the nomination Your Way to success of the Industry Competition The winner of the Storm of regions nomination of the Industry Competition The winner of the Standard of Virtonomics nomination of the Industry Competition The best player of the qualification for the quarterly Industry Competition Winner of the Contest for Managers in the nomination "Knowledge is power!" Winner of the Contest for Managers in the nomination The Standard of Virtonomics Three years with Virtonomics
 
in some small markets where nobody is or you lead in quality and brand you can make easily 300 % profit or more. i do it only in small scale but i guess it is possible too if with a big company.
 
1. be the first
2. be the smartest
3. have a monopoly
 
i have seen even more than a thousand percent margin but that's only possible on really small markets in one update. when your shop is in the top 500 list someone will see where the money is earned and copy the idea. :-)
 
just think about something where copper and aluminium is needed to produce it, like cooker. make sure you have a high brand and high quality and sell it somewhere with almost no competition. that's it ;-) 
 

List of forums -> Free communication (everything except serious game talk)-> Profitability of Companies and curious cases in companies' asset growth

  • Page:
  • 1