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.
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
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.
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.
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?
PAO might have technology sales. Investment fund is a company with no subdivision and having more than $10 bln cash.
Also increase or decrease of assets does not reflect the profitability of company. Sum of assets depend on many other things like average wholesale market qualities and prices etc.
One more thing.. How does an investment fund company make money? If it doesn't have subdivisions it can not sell... Even technology, you will need labs to invent them.
you might have invented the techs prior to selling off all subdivisions...
As for your method of calculating profitability: it is a good proxy and I use it myself to measure myself. But as Jane stated, there can be significant fluctuations. Let's say I have an ag farm that produces 2M Q10 grain a couple of weeks per year. Now, if I don't do anything with that grain, it offers 0 turnover.
Now at some point I'm going to have a stock of say 100M grain. If the value of that increases by 10$ a piece, my assets will grow by 1Bn...
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 ;-)