Will Apple’s Profits Be Investigated Next?

I wouldn’t want to give Obama or Congress any ideas, but in the first quarter of 2011, Apple (AAPL) was more profitable than ExxonMobil based based on both profit margin (24.27% vs. 9.30% for Exxon) and profits per employee ($128,470 vs. $127,392 for Exxon).  In addition, Apple’s effective income tax rate was only 24.22% compared to Exxon’s 42.2% rate.

Q1 2011 ExxonMobil Apple
Revenue $114.0B $24.7B
Earnings Before Tax $18.94B $7.96B
Income Taxes $8.0B $1.9B
Net Profit $10.65B $5.98B
Effective Tax Rate 42.20% 24.22%
Profit Margin 9.30% 24.27%
Profit/Employee $127,392 $128,470

About Mark J. Perry 262 Articles

Affiliation: University of Michigan

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.

He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.

Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.

Visit: Carpe Diem

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