Search Results for: profit margin

S&P 500 Adjusted Net Profit Margin and Info Tech Margins Info Tech margins are twice as high as S&P 500 margins. Picture source: Goldman Sachs Global Investment Research

U.S. Corporate Profit Margin and Recession The chart shows a U.S. corporate profit margin proxy. If it declines below 10% in this business cycle (red line), it could suggest a coming recession.

Increased Productivity Boosts Profits Margins When a company increases productivity, it makes more products without increasing costs. Higher productivity can improve the company’s profit margin and total profits. During this business cycle, productivity has increased at an average rate of 1.3% year-over-year. But productivity has been cut in half since the previous business cycle. You…

Global Nominal GDP and Corporate Profits This chart shows the correlation and the slowdown in global growth and corporate profits. Historically, margin pressures have preceded the start of recessions. Picture source: J.P. Morgan