Global economic profit halved: $612bn to $297bn average, 2005-19

Original title: Shrinking profit pools · McKinsey & Company · 15 May 2023

What does the data say about shrinking profit pools?

Original chart: McKinsey & Company

So what

Revenue growth has not translated into value creation: the economic-profit pool of the top 4,000 firms roughly halved in 15 years. Competing for a shrinking pool means winners must take share rather than ride the market. Boards should test strategies on economic profit, not revenue or earnings growth alone.

Data sources: S&P Global; Corporate Performance Analytics by McKinsey
Authors: Marc de Jong
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Rights: Original-source link only. Killerchart does not reproduce this chart.
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So what

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