Gavekal Capital: US Corporate Profit Margins Increase Again In The 3Q
Thursday, December 5, 2013
US Corporate Profit Margins Increase Again In The 3Q
US corporate profit margins are at their second highest level ever at 10.14%. The highest level was reached in the 4Q11 when profit margins spiked to 10.27%. 4-year annualized growth of profits have slowed from 19.4% to 10.1% in just three quarters. Profit margins at such extreme levels indicate that 4-year annualized profit growth may turn negative in the next 6-8 quarters. Finally, nonfinancial corporate profit margins reached an all-time high in the third quarter.