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What data are they basing their graph on? I've looked at quite a few quarterly reports by large corporations and I see the same pattern everywhere: Nominal sa
by thworp 3y ago
What data are they basing their graph on?
I've looked at quite a few quarterly reports by large corporations and I see the same pattern everywhere:
Nominal sales up by ~10%, cost of goods sold up by ~20%, profit up by low single digit percent. In other words they are driving towards a cliff and the last 2 quarters of this year we will probably see losses.
But yes, it has to be those damn greedy corporations, it couldn't possibly have anything to do with shutting down global supply chains while increasing and radically shifting consumer demand.
- FollowingTheDao 3y agoDude, this is the IMF admitting it is true!
- piva00 3y agoYeah, just read it directly from the ghouls at IMF: https://www.imf.org/en/Blogs/Articles/2023/06/26/europes-inflation-outlook-depends-on-how-corporate-profits-absorb-wage-gains https://www.imf.org/en/Blogs/Articles/2023/06/26/europes-inf...
- deelowe 3y agoSeeing the same thing from the inside. Both mega corps I've worked for over the past 5 years have this issue.
- acaloiar 3y ago> From a more general perspective, our paper is loosely linked to the strand of literature which analyzes profitability and market power using firm-level data (e.g., De Loecker et al (2020), Davis et al (2022)) but we focus on national account data. [1] [1] https://www.imf.org/-/media/Files/Publications/WP/2023/English/wpiea2023131-print-pdf.ashx https://www.imf.org/-/media/Files/Publications/WP/2023/Engli...
- thworp 3y agoThanks for the deep link, the other one sent me on an infinite redirect loop. It is still puzzling to me, since they have "Trade, Travel, Accom. and Food" with the highest profit contribution in figure 2. However if you look at the quarterlies of Nestel, P&G and others their profits are increasing by low single-digit % if at all.
- nostrfanboi 3y agoOh I thought inflation really was companies increasing their profit margins, the Russian attack on Ukraine, Brexit and Taylor Swift's and Beyonce's concerts. Well, basically everything except for central banks printing shitloads of money. /s addition: Fortunately it seems even central bankers are coming to terms with this: "Agustin Carstens, head of the Bank for International Settlements (BIS), said that governments and central banks went too far in dishing out cash during Covid." https://www.telegraph.co.uk/business/2023/06/26/britain-inflation-crisis-blame-covid-bailouts-bank-england/ https://www.telegraph.co.uk/business/2023/06/26/britain-infl...
- LeafItAlone 3y agoThe first line in the article links to the IMF blog post where the chart was taken from and that IMF blog post links to their new paper on the topic. And if you are going to knock a post about sources, providing some of your own while refuting the claim would make your argument stronger.
- 2devnull 3y agoOr the war in Ukraine, or international derisking/decoupling or whatever they want to call it after last week. Or the bankruptcies caused by the shutdowns/inflation/subsidization of specific business while letting others fail, and market consolidation which that causes, which itself leads to new and bigger monopolies, and monopsonies, and therefore less elastic prices as competition is removed.