Trickle Down Economics Illustrated

[Rocket_Scientist65]

11. A little math lesson is in order.

Total revenue is NOT net profits. If your total sales was $100 million but the costs including labor, materials, marketing etc, is 90 million to generate those sales, your profit is only 10% of total revenue. In Boeing's case:

Total Revenue for 2016 (in thousands)
$94,571,000
Cost of Revenue
$80,790,000
Gross Profit
$13,781,000
Operating Expenses:
Research and Development
$4,627,000
Sales, General and Admin.
$3,313,000
Non-Recurring Items
$0
Other Operating Items
$0
Operating Income
$5,834,000
Add'l income/expense items
$33,000
Earnings Before Interest and Tax
$5,874,000
Interest Expense
$306,000
Earnings Before Tax
$5,568,000
Income Tax
$673,000
Minority Interest
$0
Equity Earnings/Loss Unconsolidated Subsidiary
$0 $0 $0 $0
Net Income-Cont. Operations
$4,895,000
Net Income
$4,895,000
Net Income Applicable to Common Shareholders
$4,895,000

$300 million on $4,895,000,000 is a not insubstantial 6.13% of net profits, not 0.32%, so yes, that is a substantial investment.