Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I am having trouble researching potential companies for my Rule Maker Portfolio. Right now I am trying to run the calculations on American Express and I am not sure my numbers are coming out right.
I have a Sales Growth of 8.4% between '96-'97, and a Sales Growth of 7.7% between '97-'98. Those numbers are a little lower than I would want them to be. Of course I am aiming for the 10% suggested in the RM strategy.
Furthmore I am having difficulty with the Gross Margins. I understand that AXP's revenues in 1998 are $19,132 million. Then I think there total expenses for 1998 are $16,207 million. That only leaves a profit margin of $2,925 million before taxes and $2,141 million after taxes. Does it sound like I am looking at the right numbers? That only leaves them with a Gross Margin of 11%. Isn't that really low for a RM company? Isn't the target supposed to be 50%? Please email me any responses to this. If my numbers are right then why is this a Rule Maker stock company and if my numbers are wrong please help me.

Wilson Kanaday
[email protected]
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.