seeing tomorrow – companies in the state of illinois the impact of macroeconomic environment
TRANSCRIPT
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Seeing Tomorrow – Companies in the State
of IllinoisThe Impact of Macroeconomic Environment
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Motivation
• Weaving on our theme “Seeing Tomorrow” we will focus on macroeconomic environment impacting the companies headquartered in Illinois.
• Based on long term data, we will forecast:
• Trend in assets growth (investment behavior)• Capital accumulation determines increase in employment of labor• “Extrapolating from the experience of the late 1990s, the NAIRU could be lowered by
as much as 1 full percentage point by a sustained $250 billion annual increase in infrastructure investment. This could mean that more than 1 million additional workers each year find employment”
--Economic Policy Institute
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Motivation cont’d
• Trend in Revenue growth• Indicator of aggregate demand and consumption level
• Trend in Profitability (earnings) • Living standards of investors• Further investment of companies
• The management efficiency of companies
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• Public Companies: • stock market listed corporations• COMPUSTATA data up to Feb 2015
• Private Companies:• Private-held corporations or LLCs or LLPs
• FACTSET data up to Feb 2015
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In Chicago Metro Area 205 Outside Chicago Metro Area 26 In Chicago Metro Area 8,077 Outside Chicago Metro Area 11,367
Public
Count of Illinois CompaniesIn Chicago Metro Area 205 Outside Chicago Metro Area 26 In Chicago Metro Area 8,077 Outside Chicago Metro Area 11,367
Private
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Public Companies – Chicago Headquartered
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Forecasts
4.18% or $81 Billion
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Forecasts
2.25%
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Forecasts
3.30%
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Revenue of Chicago Public Companies in 2009 Dollars
Forecasts
0.53%
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Retail
Transportation
Manufacturing
Financial
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Illinois Public Companies
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Level of Assets of Midwest Public Firms
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Hot Zone of Revenue Generation
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Management Efficiency
Assets Turnover Ratio=𝑆𝑎𝑙𝑒𝑠𝐴𝑠𝑠𝑒𝑡𝑠
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Private-held companies by state
in m
illio
n do
llars
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Concluding Remarks
• Publicly listed companies:• The investment growth (asset growth) is expected to increase
• but may not beat the speed of GDP increase• The revenue growth is also expected to increase in nominal terms
• but decline if purchasing power is considered• The income growth is with more uncertainty, but is also expected to increase
on average. • Employment is expected to increase. Mainly from the financial sector and
manufacturing sector.
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Concluding Remarks (cont’d)
• High management efficiency ratio of Illinois public companies • The data shows Illinois private-held companies generate highest
amount of Net Income among all states in the US.