3 ms·

They have a low single digit percentage profit margin. That is not making money hand over fist, that is barely surviving. https://www.mazda.com/content/dam/ma

• 0_____0 1y ago
  That doesn't seem unusual for automotive. What number were you expecting to see?
  • lotsofpulp 1y ago
    It's not about unusual, just that a low profit margin in a volatile industry is (with a downward trend in sales for almost 10 years), by definition, not making money hand over fist. That is why their market cap graph looks like this: https://companiesmarketcap.com/mazda/marketcap/ https://companiesmarketcap.com/mazda/marketcap/
• crmd 1y ago
  Mazda’s operating margin is higher than Walmart’s (along with many others). I think hyper scalable sectors like high tech and finance distort our OM expectations.
  • lotsofpulp 1y ago
    Operating margin is irrelevant, only profit margin matters for this context. Walmart hangs out in the 2.5% to 3.5% range, not materially different than Mazda. Either way, any business with a low single digit profit margin is not making money hand over fist. It might be different if Mazda had such a huge and loyal market share that their low profit margins are offset by low volatility of expected future sales (such as with Walmart/Costco), but that isn't the case at all with Mazda. Their expectation is that their sales will be stagnant at best, but probably decline for the foreseeable future.