Mega grocery stores, discount stores, and warehouse clubs often have small profit margins but have high turnover ratios. The small profit margins as a percent of sales exist because of intense competition. The inventory turnover ratios are high because the stores feature the fast selling brands at low prices. Their strategy is that huge sales volumes with small profit margins will still result in adequate net income dollars. In contrast to the stores with low profit margins and high turnover ratios, is a heavy equipment manufacturer with a high demand product that takes six months to manufacture. If this manufacturer has few or no competitors, a great product, and an excellent reputation for service, its profit margin can be very large. Unlike the discount stores, its inventory turnover will be very very low.

Sometimes the simplest advice can be the wisest. The wisest advise I received that can be applied to investments was from Dr. Sanders when he told us to get out of debt before we start investing. As I began to research this, I found that this is in fact a very controversial topic. Some argue that you should invest while getting out of debt, others believe you should invest in hopes that you can make enough profit to get out debt and so on. I personally agree with Dr. Sanders because as stated in Romans 13:7-8, I don’t want to owe any man anything. Proverbs 22:7 goes on to reference a debtor as a slave to the lender. What a sobering thought! Ultimately it’s saying that debt puts us in a position where we lose our independence. Depending on the amount of debt in some cases the creditors are almost in authority’s role. No one or nothing should rule in our lives but God. However the silver lining is we can take back the control by paying of debt. “Paying off debt will provide the discipline needed to save money for investing,” (Mercadante, K. 2014). This will