The New Yorker’ John Cassidy looked over the balance sheets of Apple and Goldman Sachs to decide which company offers the best return on its capital. Cassidy used the latest earnings reports from the two American companies, then calculated that the two had similar profit margins but very different economic returns. Each company’s return on assets was examined, determining that Apple is twenty times more profitable than Goldman Sachs.
Apple is more profitable for a few a few reasons - it makes highly desirable products that people spend their hard-earned money on. There’s always a huge demand all Apple products so they can decide their margins (usually high ones) which are well over the cost of manufacturing; thus giving them a nice profit on every iDevice or Mac sold. Read more







