Corporate Profits Before Taxes for United States
Q0972BUSQ027NNBR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
88.80
Year-over-Year Change
26.14%
Date Range
1/1/1946 - 10/1/1967
Summary
The 'Corporate Profits Before Taxes for United States' metric measures the total pre-tax profits earned by U.S. corporations. This key economic indicator provides insight into the financial health and investment potential of the private sector.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This series tracks the total income earned by corporations before deducting income taxes. It is a vital measure of business profitability and a leading indicator of economic growth, as increased corporate profits can spur investment and hiring.
Methodology
The data is collected by the U.S. Bureau of Economic Analysis through surveys of public and private corporations.
Historical Context
Policymakers and analysts monitor corporate profits to gauge the overall strength of the economy and inform decisions around fiscal and monetary policy.
Key Facts
- Corporate profits hit a record high of $2.78 trillion in Q4 2021.
- Profits have grown by over 50% since the COVID-19 pandemic low in Q2 2020.
- The profits-to-GDP ratio reached 12.5% in Q4 2021, the highest level since 1950.
FAQs
Q: What does this economic trend measure?
A: The 'Corporate Profits Before Taxes' metric tracks the total pre-tax income earned by U.S. corporations, providing insight into business profitability.
Q: Why is this trend relevant for users or analysts?
A: Corporate profits are a key indicator of economic health and investment potential, helping policymakers and investors assess the strength of the private sector.
Q: How is this data collected or calculated?
A: The data is collected by the U.S. Bureau of Economic Analysis through surveys of public and private corporations.
Q: How is this trend used in economic policy?
A: Policymakers and analysts monitor corporate profits to gauge the overall strength of the economy and inform decisions around fiscal and monetary policy.
Q: Are there update delays or limitations?
A: The corporate profits data is released quarterly by the Bureau of Economic Analysis, with a typical 2-month lag from the end of the reference period.
Related Trends
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Ratio: Current Assets to Current Liabilities, All Manufacturing Corporations for United States
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Corporate Net Income, Service for United States
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Deficits, Finance Companies for United States
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Ratio of Liabilities of Business Failures to Current Liabilities of All Nonfinancial Corporations for United States
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Percentage of Companies with Profits for the United States
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Citation
U.S. Federal Reserve, Corporate Profits Before Taxes for United States (Q0972BUSQ027NNBR), retrieved from FRED.