Healthcare

Exorbitant profitsđź’°

We all know the bad boys when it comes to health care are insurance companies with their high premiums and huge profits.

Here is a test. Look at this list of company profit margins. Can you pick out the health insurance companies? Tomorrow I will show the answer.

  1. -.31%
  2. 22.41%
  3. -38.80%
  4. 4.07%
  5. 18.75%
  6. 2.96%
  7. 5.42%
  8. 31.18%
  9. 1.3%
  10. 5.3%

What Is Profit Margin? 

Profit margin is one of the commonly used profitability ratios to gauge the degree to which a company or a business activity makes money. It represents what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the business has generated for each dollar of sale. For instance, if a business reports that it achieved a 35% profit margin during the last quarter, it means that it had a net income of $0.35 for each dollar of sales generated. Source: Investopedia

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3 replies »

  1. After posting your answer to this question please ask the same question for pharmaceutical company profits. Many years ago I worked for US Steel and my wife worked for Merck. It was when Merck was first planning to built a new corporate heaquarters away from the plant in Rahway, NJ. They put the planning on hold because profit margins had dropped al the way down to 15%.

    The profit margin for US Steel was in the 3% to 4% range and the company felt they were doing fine. What hurt the steel industry was dumping by foreign countries. Tariffs should have been levied 30 or 40 years ago but that is a different subject.

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