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 Operating Margin Profit margins remain elevated and are rebounding in Q1. Image: Deutsche Bank Asset Allocation
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
ISM Manufacturing PMI and S&P 500 Operating Margin The Manufacturing Purchasing Managers Index has peaked. Will S&P 500 operating profit margins roll over? Image: Morgan Stanley Wealth Management
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
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