S&P 500 Net Profit Margin

S&P 500 Net Profit Margin Goldman Sachs forecasts S&P 500 net profit margins to reach 11.1% in 2021, and 11.5% in 2022. Image: Goldman Sachs Global Investment Research

S&P 500 vs. Profit Margins

S&P 500 vs. Profit Margins Do valuations still matter? The current divergence between the S&P 500 and profit margins is huge. Image: Crescat Capital LLC

Profit Margins of S&P Large Caps and Small Caps

Profit Margins of S&P Large Caps and Small Caps Profit margins between small and large caps are widening. Industries with highest concentrations are getting all of the profit margin improvement. Image: Arbor Research & Trading LLC

U.S. Corporate Profit Margin and Recession

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

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…

After-Tax Corporate Profits as a Share of GDP

After-Tax Corporate Profits as a Share of GDP Profit margins have risen sharply to an all-time high in the third quarter of 2021. Image: Goldman Sachs Global Investment Research