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Exxon earns a lot of money

Submitted by Xin Lu on March 10, 2008 - 17:05.

Exxon earns a lot of money because there is a lot of demand for its products, but the oil industry's profit margin was only about 7.6% last year:

http://www.usnews.com/articles/business/economy/2008/02/01/exxons-profit...

Compare this to Coca cola: http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=KO... profit margin on soda pop is 27%.

So I would argue that even though Exxon makes a crapload of money, the profit on gas is much less than the profit made on soda pop, and if you want to link how cheap you think a product is to corporate profits, then soda pop is much more expensive than gas.

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