$12 trillion in sales, over the last year (not including financial firms). The costs of doing business remain high, but even at an aggregate profit margin of 6.9%, American enterprise is generating $835B in profits.
We can think of each economic sector as a subsidiary of America, Inc. Here is how they stack up.
Consumer stocks alone make up $4.2T of total sales, but margins are lower at 5.4%. Energy continues to dominate, as offshoots of Rockefeller’s original Standard Oil—Exxon and Chevron—continue to produce massive profits 155 years after the first “rock oil” was discovered in Pennsylvania.
America, Inc. continues to lead in technology, where its companies are earning an aggregate profit margin of 12.7%. Telecom and Utility stocks are much smaller “subsidiaries,” with combined sales of less than $700B, but both sport healthy margins.
America, Inc. is a quite the business: diversified, innovative, and massively profitable. This begs a question for millennials: would you rather sit in cash, or buy a slice of America Inc. ($SPY) with the click of a button?
Note: I’ve excluded financials for this post, because they don’t fit cleanly into traditional income statements. With financials (banks, insurance companies, etc) included, total sales would be roughly $14T and net income would top $1T. To be included in this calculation, a company has to be domiciled in the U.S., ADRs and other foreign stocks listing on a U.S. exchange are NOT included. I’ve excluded micro caps, but they don’t add up to much. Private companies are NOT included in these calculations.
Photo by Thomas Hawk
Recommended for You
Hoping to match the profit margin of his competitors, United Airlines Chief Executive Oscar Munoz laid out a plan this week to generate $3.1 billion in new revenue and savings by 2018.Los Angeles Times
Don't make snap decisions about your portfolio. Brexit may just be a speed bump, not a brick wall, for a bull market that refuses to die.Kiplinger.com
Discover how Americans' perceptions of their financial security differ from reality, and learn how much in savings is sufficient to achieve financial security.Investopedia
Jim Cramer shares his outlook on the impact of a Brexit for the market next week.CNBC
It's more than stocks or currencies: The global economy could actually be damaged if the U.K. votes to leave the EU.CNBC
Even before the Brexit vote, Jim Cramer saw some concerning signs for stocks coming from these industries.CNBC Videos
Britain’s exit is expected to jolt the U.S. economy, likely rattling restive equity markets and driving up the value of the dollar. It could also weaken U.S. diplomatic leverage in Europe and upend the ...MarketWatch
The pound plunged to a more-than-30-year low against the dollar on Friday as it became clear the leave vote would carry the day.CNBC
Minnesota's largest health insurer will pull the bulk of its plans off the individual market due to heavy financial losses. Blue Cross Blue Shield of Minnesota said late Thursday will affect approximately ...Associated Press
Thursday’s unexpected U.K. vote to walk out of the European Union shocked equity, currency, and commodities markets Friday. The dollar strengthened against both the euro and the British pound and that ...247wallst.com
As Williams Cos. emerges from nine months of M&A purgatory and the chances of the pipeline giant remaining a standalone company are higher than ever, investors are asking:Bloomberg
Tapping into global investor networks can provide valuable insights about how to manage market shocks.The Street
June 23 -- John Heilemann and Mark Halperin break down how dangerous recent Republican endorsements of Hillary Clinton are to Donald Trump's campaign.Bloomberg Video
French utility EDF on Friday confirmed its commitment to build a nuclear plant at Hinkley Point following Britain's vote to leave the European Union. The 18 billion pound ($24 billion) project in southern England is one of the largest French investments in Britain and a final decision has been…Reuters
Getting out of debt is much harder than getting into it. But you can do it — and along the way, you’ll rid yourself of a lot of stress.Los Angeles Times
BRUSSELS (AP) — Now that Britain has voted to leave the European Union, the bloc's first order of business is figuring out how to get rid of it. Surprisingly, that's a tall order.Associated Press
The UK government must resolve key issues with the EU, including immigrants' access to Britain, as well as trade deals and tariffs.BBC News
The British referendum could seem to Americans like a provincial problem. But from the perspective of many American companies, the British are employees and customers.CNBC.com