Lets say the bank offers a profit of 5%. This means a company needs to get a profit of 6%. When a company earns less than 6% it becomes more profitable to put the money in a bank account in stead of using the money to run a company. As long as the company delivers a profit range of 6% it stays profitable to run the company.
This means a profit rate of 6% is an acceptable profit rate for a company. And lots of companies manage to reach this profit rate.
Microsoft earned $ 62 billion in 2010.
The operating income was $ 24 billion.
This is a profit rate of 38 %.
This profit rate is much higher than the minimal profit rate to run a profitable company.
Source: Annual report 2010 of Microsoft.
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Minimal profit rate required to run a profitable company Figurs 2010
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