Chart of the Week: Corporate Profit Margins
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- Опубліковано 15 кві 2024
- Free Business Cycle Video Series:
www.epbresearch.com/business-...
In this video, we look at the trends in corporate profit margins during past business cycle recessions.
Video edited by:
www.tranches.com
DISCLAIMER: This video does not provide investment or economic advice and is not professional advice (legal, accounting, tax). The owner of this content is not an investment advisor. Any securities, trading, or market discussion is incidental and solely for entertainment. Nothing herein shall constitute a recommendation, investment advice, or an opinion on suitability. The information in this video is provided as of its initial release date. The owner of this video expressly disclaims all representations or warranties of accuracy. The owner of this video claims all intellectual property rights, including copyrights, of and related to this video.
Great content! This is brass-tacks stuff. Excellent.
yo! love and prayers to u, so glad to see u back and hoping ur hangin in thru all this
Great this just shows we can increase corporate taxes. What are they going to do? Leave and open up shop in Africa?
Excellien. It is really helpful to see how some of these lesser used economic data fits in the business cycle.
In an inflationary environment, businesses can raise prices, until they can't.
You should go back on the Thoughtful Money podcast
I would like to watch that, do you happen to have a link for me?
The 2020 recession has a corporate profit margin that‘s higher than the 1979-1989 peak. so apparently the absolute profit margin cannot predict recession but the relative profit margin predicts better. Or in another word maybe we can look at the change of the profit margin compared to the recession timeframe．
Why aren’t your vids popping up on my feed anymore? 🤔
Keeping profits fresh...
Profit margins are very high among the big tech companies. A lot of the growth of profit margin in the SP500 is a result of those companies becoming a large part of the total index.
Thanks
Bang on! Where does someone get the data for the US Pre-Tax Corporate Profit Margins as displayed in charts in the video. I tried FRED, but they don't have the data. Cheers!!!
damn according to this chart, "economy strong. FUCK the poors inflation is good"
What happens when you take out NVDA profit margin?
Hello game of trades, I really appreciate all the videos you’ve done. Where would I go to learn all of this stuff that you talk about in your videos. Did you take courses or go to university. Just want to learn this information for myself so I can explain to others as well.
There's been research that shows that much of the "inflation" we're currently experiencing is due to increased corporate profits. I wonder if that means we'll see a deflationary period before corporate profits evaporate and the economy slows down. All the other leading indicators are flashing red right now, so I don't see how corporate profits can remain high for an extended period of time, considering the weakness in the rest of the economy. High corporate profits might even explain many of the other bad signals.
Also if you look at this by sector you can see Real Estate is holding this up. It was 35% Q42024 for real estate sector. This is not sustainable, it is just a matter of time before interest rates start to hit this industry for real.
aaah yes a chart showing how they just kept increasing prices more than we can afford instead of laying us off....
When exactly is the latest 12.3% number from? If it is from Q4 last year, and I am guessing it is, than it is a lagging indicator..
Where's your OF
the profit margin of current year could not be compare to the past of 30-40 years ago as the average earning yield on asset of the economy now is much lower than the past
How is that relevant? All you're telling me is that the bubble we are in has grown. By this logic, we shouldn't be able to compare the present to the past whatsoever, which I disagree with. What I would say is that the economy is multifaceted and you should not look at data on corporate profit margins as solitary evidence of an impending recession. Watch EPB's other videos for more info.
The problem is spoiled consumers - instead of walking away when getting gouged, we puff out our chest and reach for the credit card. You can't even deny it.