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 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 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 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 Quarterly Net Margins Ex-Financials Forecasts suggest that S&P 500’s net margins are poised to rise over the next few quarters, potentially reaching new highs in 2025, indicating a favorable outlook for profitability. Image: BofA US Equity & Quant Strategy
S&P 500 Quarterly Operating Margin An expansion in S&P 500 margins is also anticipated in the coming quarters, pointing towards a potentially optimistic outlook for profitability. Image: Deutsche Bank Asset Allocation
S&P 500 Operating Margin After the COVID-19 pandemic, the operating margins of companies in the S&P 500 have returned to a state of normalcy, leading to a positive trend of improved profitability and cash flows for these companies. Image: Morgan Stanley Wealth Management
U.S. EBIT Margin vs. ISM Manufacturing Prices Paid Index Profit margins are rarely sustained by falling inflation. Image: Morgan Stanley Wealth Management
S&P 500 Operating Margins Will the profitability of S&P 500 companies improve in the coming quarters? Image: Morgan Stanley Wealth Management
Median S&P 500 Company Year/Year EBIT Margin Growth (Excluding Financials and Energy) Profit margins for the median S&P 500 firm are expected to decline significantly. Image: Goldman Sachs Global Investment Research