Corporate profit margins at record high despite rising costs – By Sam Ro (Axios) / Aug 11 2021
America’s biggest companies have managed to achieve record-high profit margins, despite rising input costs.
Why it matters: Raw materials inflation and wage hikes have had almost no noticeable effect on corporate earnings. Still, analysts warn it may just be a matter of time before those costs catch up with margins.
By the numbers: S&P 500 companies are reporting an average net profit margin — net income as a percentage of revenue — of 13.0% in the second quarter, according to data compiled by FactSet through Friday.
- This is the highest profit margin since FactSet began tracking the metric in 2008.
What they’re saying: A lot of businesses used the past year to streamline their operations.
