So looking at the brief results below, the question is How did Enron have profit that is greater than their sales? (After all, their profit as a percentage of sales (after tax) was 231%)
|Firm||Sales ($,000)||Profit ($,000)||Margin (P/S)|
Well the answer is probably that they are sucking cash out of Zoom. However, what isn't clear is would it have been better to leave the money in Zoom?
Other pundits are wondering how Zoom feels about carrying the 'dead wood' of Enron. (As an aside, Ballistic, who were previously owned by Zoom, are now worth 25% more than when Zoom sold them). Even more interesting is the low (or very low in the case of Enron) RO of the former BE companies
And what will happen when Balistique stops pumping cash into Ultimate Cycles and Revolution Cycles–is it a case of good money after bad? Will they be able to catch up with Enron.