I had a look at information on IKEA at:
I was surprised to see this:
Revenue € 23.5 billion (2010)
Net income € 2.7 billion (2010)
Such a small percentage of Revenue was profit. I think if I was running a company with a revenue of 23.5 billion Euros I’d want a much higher profit than 2.7 Billion Euros.
The firm is known for the attention it gives to cost control, operational details and continuous product development, allowing it to lower its prices by an of average 2 to 3% over the decade to 2010, while continuing its global expansion.
The groups of companies that form IKEA are all controlled by INGKA Holding B.V., a Dutch corporation, which in turn is controlled by a tax-exempt, not-for-profit Dutch foundation. The intellectual property of IKEA is controlled by a series of obscure corporations that can be traced to the Netherlands Antilles and to the Interogo Foundation in Liechtenstein.
Peter, IKEA has a lot of stuff going on that is very different from other kinds of capitalistic corporations as you can see above. Remember too that while the earnings of 23.5 billion Euros sounds like a lot and 2.7 billion Euros sounds like only a small portion of the 23.5, IKEA has costs including merchandising, employee salaries, shipping, manufacturing, etc. etc. that have to be paid from the 23.5. The net is what is left is basically cleared and the amount is still substantial.