Quarterly Financial Report: U.S. Corporations: Pharmaceuticals and Medicines: Net Income Retained in Business

QFRNIRB385USNO • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

11,567.00

Year-over-Year Change

-11.92%

Date Range

10/1/2000 - 4/1/2025

Summary

This economic indicator tracks the net income retained by pharmaceutical and medicine corporations in the United States each quarter. It provides critical insight into the financial health and reinvestment strategies of a key sector in the U.S. economy.

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

The metric represents the portion of corporate earnings that companies choose to keep and reinvest rather than distribute as dividends or use for other purposes. Economists analyze this trend to understand corporate financial strategies, investment potential, and sector-specific economic performance.

Methodology

Data is collected through comprehensive quarterly financial reports submitted by pharmaceutical and medicine corporations to regulatory agencies.

Historical Context

This indicator is used by policymakers, investors, and economic analysts to assess the financial resilience and growth potential of the pharmaceutical industry.

Key Facts

  • Reflects corporate financial strategy in the pharmaceutical sector
  • Indicates potential for future research and development investments
  • Provides insight into sector-specific economic performance

FAQs

Q: What does net income retained in business mean?

A: Net income retained represents the portion of corporate earnings that a company keeps to reinvest in its operations, rather than distributing to shareholders as dividends.

Q: Why is this metric important for the pharmaceutical industry?

A: It shows how much capital pharmaceutical companies are preserving for future research, development, and strategic investments in new medical technologies.

Q: How frequently is this data updated?

A: The data is typically updated quarterly, providing a current snapshot of the pharmaceutical sector's financial performance.

Q: How do investors use this information?

A: Investors analyze this metric to assess a company's financial health, growth potential, and strategic reinvestment capabilities.

Q: What are the limitations of this indicator?

A: While informative, this metric should be considered alongside other financial indicators for a comprehensive understanding of corporate performance.

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Citation

U.S. Federal Reserve, Quarterly Financial Report: U.S. Corporations: Pharmaceuticals and Medicines: Net Income Retained in Business [QFRNIRB385USNO], retrieved from FRED.

Last Checked: 8/1/2025