Companies profits for the fourth quarter

The flow of funds, the Fed indicated U.S. companies profits for the fourth quarter have barely met. They donate at least some hope.
There is also good news. With its macro-economic financial accounts for the fourth quarter, the Fed already has the company profits for this period is supplied by the Bureau of Economic Analysis (BEA) only on 26 March with the third estimate of GDP for the last quarter of 2008 submitted. Thereafter, the domestic profits of non-financial U.S. corporations in the fourth quarter before taxes fell slightly, but after taxes for the second time in succession, slightly increased.

That sounds odd, if one considers that in the S & P 500, according to Bloom mountain-GAAP loss of approximately $ 175 billion is incurred only for the $ 126 billion in the financial sector is falling. But the GDP statisticians measure precisely the profits from current production, and is playing aspects such as (corporate) restructuring charge adjustments or no role. The fool is that the economic gains are very revisionsanfällig and sometimes even years after the first publication to be corrected.

And the details will only announce the BEA. But given the massive job losses, it is certainly not implausible that the U.S. firms to locate their underlying profitability somewhat “defend” could. That would be at least a small consolation, as a healthy company with the crisis rather than with health.

If the question is how the companies on the basis of economic data are evaluated. To create a comprehensive picture to get to, we draw the Total Internal funds of non-financial corporations back. This is basically a cash-flow concept, which also has the advantage that, in addition to depreciation and reinvested earnings abroad are covered.

As the Total Internal Funds after dividends must be disclosed, we expect these back to the entire operating cash inflows of view. And it is clear that the price / cash flow ratio at least twelve percent below the average since 1952 was. Only thus, the assessment is just the average until the beginning of the irrational exuberance the 1996th Really cheap U.S. equities are still a long way. That’s the bad news.

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