U.S. NIPA Profit Margins and Recessions
U.S. NIPA Profit Margins and Recessions U.S. corporate profits are booming. Image: Oxford Economics
S&P 500 Adjusted Net Profit Margin and Info Tech Margins
S&P 500 Adjusted Net Profit Margin and Info Tech Margins Information Technology margins remain among the highest of all industry sectors. Image: Goldman Sachs Global Investment Research
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.
Corporate Profits – S&P 500 Index Trailing 12-Mo. Operating Margin and U.S. CPI Less U.S. PPI
Corporate Profits – S&P 500 Index Trailing 12-Mo. Operating Margin and U.S. CPI Less U.S. PPI The gap between CPI and PPI is deeply negative. Are U.S. coporate profits at risk in the next 12 months? Image: Morgan Stanley Wealth Management
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…
S&P 500 Operating Earnings and NIPA Corporate Profits
S&P 500 Operating Earnings and NIPA Corporate Profits Goldman Sachs expects S&P 500 margins to rise slightly in 2020. Image: Goldman Sachs Global Investment Research
Global Nominal GDP and Corporate Profits
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. Image: J.P. Morgan