| Released On 12/20/2013 8:30:00 AM For Q3:13 | ||||||
|
Corporate profits in the third quarter were revised to $1.869 trillion versus the initial estimate of $1.872 trillion, up from $1.821 trillion the prior quarter. Profits in the third quarter increased an annualized 10.8 percent, following a gain of 8.5 percent in the second quarter. Profits are after tax but without inventory valuation and capital consumption adjustments. Corporate profits on a year-on-year basis increased 5.6 percent versus 5.3 percent in the second quarter.
| |
| Definition Corporate profits, as reported by the Bureau of Economic Analysis (BEA), are summarized briefly as the income of organizations treated as corporations in the national income and product accounts. The BEA reports several measures of profits. Profits from current production (corporate profits with inventory valuation and capital consumption adjustment), are also known as operating or "economic" profits. Capital consumption adjustment deals with the differences in depreciation allowances used for accounting and income tax purposes. Inventory valuation adjustment (IVA) deals with the difference in measuring the cost of inventory replacement. Book profits amount to operating profits subtracting out inventory valuation and capital consumption adjustments. After tax profits are book profits after taxes are subtracted. The Econoday reports focus on after tax profits reported by the BEA, since these are the most relevant |
