S&P500 Operating Margins And Sales Per Share Charts

For reference purposes, below are two charts depicting quarterly Operating Margins and quarterly Sales Per Share for the S&P500, as depicted.  Each chart begins in the third quarter (September) of 2010, and extends through the first quarter of 2013.  The first quarter of 2013 data is estimated, as shown.

The underlying data is from Standard & Poors earnings estimates for the S&P500, from the most recent update of June 6, 2013:

S&P500 Operating Margins 6-6-13 bigger

S&P500 Sales Per Share 6-6-13

 

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StratX, LLC offers the above commentary for informational purposes only, and does not necessarily agree with the views expressed by outside parties.

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StratX, LLC (stratxllc.com) is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and offers corporations and businesses advice, strategies, and actionable methods on how to increase revenue and profitability.

Overall Corporate Profits Relative To GDP

In the last post (“After-Tax Corporate Profits Chart 1st Quarter 2013“) I displayed, for reference purposes, a long-term chart depicting Corporate Profits After Tax.

There are many ways to view this measure, both on an absolute as well as relative basis.

One relative measure is viewing Corporate Profits as a Percentage of GDP.  I feel that this metric is important for a variety of reasons.  As well, the measure is important to a variety of parties, including investors, businesses, and government policy makers.

As one can see from the  long-term chart below (updated through the first quarter), (After Tax) Corporate Profits as a Percentage of GDP is at levels that can be seen as historically (very) high.  While there are many reasons as to why this is so, from a going-forward standpoint I think it is important to recognize both that such a notable condition exists, as well as contemplate and/or plan for such factors and conditions that would come about if (and in my opinion “when”) a more historically “normal” ratio of Corporate Profits as a Percentage of GDP occurs.  This topic can be very complex in nature, and depends upon myriad factors.  In my opinion it deserves far greater recognition.

(click on chart to enlarge image)

CP-GDP 5-30-13

Data Source: FRED, Federal Reserve Economic Data, Federal Reserve Bank of St. Louis; accessed May 30, 2013

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StratX, LLC (stratxllc.com) is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and offers corporations and businesses advice, strategies, and actionable methods on how to increase revenue and profitability.

After-Tax Corporate Profits Chart 1st Quarter 2013

Today’s GDP release (Q1, 2nd Estimate) was accompanied by the BLS Corporate Profits (preliminary estimate) report for the 1st Quarter.

Of course, there are many ways to adjust and depict overall Corporate Profits.  For reference purposes, here is a chart from the St. Louis Federal Reserve (FRED) showing the Corporate Profits After Tax (last updated May 30,2013, with a value of $1737.6 Billion) :

CP_5-30-13 1737.6

Here is the Corporate Profits After Tax measure shown on a Percentage Change from a Year Ago perspective:

CP_5-30-13 1737.6 Percent Change From Year Ago

 

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StratX, LLC (stratxllc.com) is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and offers corporations and businesses advice, strategies, and actionable methods on how to increase revenue and profitability.