An analysis of 21 economies between 2018 and 2022 finds that economic profit concentration is not limited to the ‘Magnificent Seven’ “tech” stocks – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. Other countries and sectors face more severe economic profit dominance.
Fergal Mullen’s challenges entrenched dogmas in venture capital, urging a more thoughtful and individualized approach
Data from the Crux of Capitalism finds that the ‘Magnificent Seven’ “tech” stocks – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla – together accounted for 32% of the economic profit of all firms listed in the US stock market.
As interest rates rose in many economies, fears of a “hard landing” grew. We examine whether a tighter monetary policy has translated into more firms going into corporate distress by tracking three indicators of corporate performance.
We examine whether China’s tremendous economic growth this century is reflected in significant economic profitmaking by its firms.
Looking at firms using both the interest coverage ratio (ICR) and Altman’s Z-score can help reveal whether a company might be in distress.
The economic profit measure developed in the Crux of Capitalism initiative is based solely on reported firm performance. As such it departs from established metrics of the national business environment
To make fair comparisons between capitalist economies, it’s important to take non-listed firms into account.
After nearly two decades, claims that Germany is the “sick man of Europe” are making a comeback. In the first six months of 2023, around half of Germany’s publicly-listed firms destroyed value, a greater share than in other EU countries, heightening the need for reform.
Traditional accounting measures often obscure the underlying health of firms and capitalist economies by ignoring the opportunity cost of capital and the potential value from R&D investment. Here we explain why these measures are misleading and make the case for a different way to capture the value created by firms: economic profit.
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