It takes ISK to make ISK
Posted: 2011-02-08 Filed under: market | Tags: eve online, industry, jita, profit, trade 5 CommentsHere’s a description of 30 days of trading activity:
+41.02 B Gross
-0.227 B Taxes
-0.378 B Broker Fees
= +40.415 B Net – Purchases = +7.684 B Profit / Month
k162space 
Okay, you lost me. Are you saying you had:
41.02 Earnings before Interest and Taxes (EBIT)
(0.605B) Taxes and Fees
40.415B Earnings after Taxes (EAT) for the month?
If so, then why are you dividing that number by 5.26 to get a monthly profit? Also, what was the amount invested in order to make 41.02 in gross profits? If 2B then that’s frikkin’ awesome, gratz mate. If 450B then that is less than 10% in gross profit, so wassup? I am just curious as I use my newly acquired thin veneer of financial knowledge.
I’m actually working on a “how much money did I have each day” report so I can see my wallet balance 30 days ago. That will tell me how much ISK it took to make +7.6 B in a month.
Not sure where you’re seeing division there, but I can see the confusion.
Basically, we took in 41.01B in gross income. When the broker fees and taxes are subtracted, that leaves us with 40.415B gross after taxes. Our expenditures for the month were approximately 33.32B, leaving us with a 7.6B profit or so.
Roughly, our margin for the last 30 days was around 22-23%.
-JB
I think what Latro is asking is how much starting capital did you have? The way I read it is:
+41.02 B Gross Receipts
-0.227 B Taxes
-0.378 B Broker Fees
= +40.415 B Net Receipts
– 32.731B Purchases
= +7.684 B Profit this Month
7.684/32.731 = 23.4% margin
I for one have a total of about 300M in liquid capital on my trading/manufacturing toons, If I operate at a 23% margin on that, I should turn it into 370M in the same time. So yes, it takes money to make money 🙂
Aha, okay got it.
41.02 Sales
(32.731B) Cost of Goods
= 8.289B Gross Profits
(???) Expenses (in the case of EvE, some way to factor ISK value of time required to manipulate buy/sell orders)
= 7.7B EBIT
(0.605B) Tax/Fees
= 7.684B Net Income
That sounds about right. Your dedication is noted. I have far more liquidity that I have the patience to invest in market wars. I instead rely on a mix of PI (c.300M/mo) and limited trading (c.100M in Buys/mo to bring in about 150M/mo). I’d do more market trading but frankly a bazillion little orders would drive me nuts. So my hat’s off to you guys.