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Strategies & Market Trends : Booms, Busts, and Recoveries
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To: Box-By-The-Riviera™ who wrote (20951)7/8/2002 2:45:37 PM
From: KyrosL  Read Replies (1) of 74559
 
Joel, of course including copay inflates revenues. At the same time it deflates margins. So Medco seems to be a less profitable company than it really is. Which is better from an investment point of view? Personally, I like fat margins much better than fat revenues.

I find it amusing that people are so "outraged" by what Medco did. All the retailers do that routinely: they include sales taxes in their gross revenues, even though they are just a conduit to the government's coffers.

Kyros
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