stock market briefing: s&p 500 income statement &...
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Stock Market Briefing:S&P 500
Income Statement & RatiosYardeni Research, Inc.
June 27, 2017
Dr. Ed Yardeni516-972-7683
Joe Abbott732-497-5306
Please visit our sites atwww.yardeni.comblog.yardeni.com
thinking outside the box
Table Of Contents Table Of ContentsTable Of Contents
June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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S&P 500 Cost of Goods Sold 3S&P 500 Gross Profit 4S&P 500 Selling, General & Administrative 5S&P 500 Interest Expense 6-9S&P 500 EBITDA 10S&P 500 OIADP 11S&P 500 Depreciation & Amortization 12S&P 500 Pretax Profit 13S&P 500 Income Tax 14S&P 500 Cash Flow 15S&P 500 Capital Expenditures 16-17S&P 500 Leverage Ratios 18S&P 500 Liquidity Ratios 19S&P 500 Asset Management Ratios 20
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18300
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S&P 500 COST OF GOODS SOLD(ratio scale, dollars per share)
Cost of Goods Sold (734.3)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 1.
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S&P 500 COST OF GOODS SOLD MARGIN(percent of sales)
(63.8)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 2.
S&P 500 Cost of Goods Sold
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S&P 500 GROSS PROFIT (SALES - COST OF GOODS SOLD)(ratio scale, dollars per share)
Gross Profit (416.3)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 3.
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38
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S&P 500 GROSS PROFIT MARGIN(percent of sales)
(36.2)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 4.
S&P 500 Gross Profit
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94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 1890
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S&P 500 SELLING, GENERAL & ADMINISTRATIVE EXPENSES (SG&A)(ratio scale, dollars per share)
SG&A (221.6)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 5.
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 1817.5
18.0
18.5
19.0
19.5
17.5
18.0
18.5
19.0
19.5
2016
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S&P 500 SG&A RATIO(percent of sales)
(19.3)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 6.
S&P 500 Selling, General & Administrative
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S&P 500 INTEREST EXPENSE(dollars per share)
Interest Expense (22.30)
Source: Haver Analytics and Standard & Poor’s.
Figure 7.
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 181
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S&P 500 INTEREST EXPENSE MARGIN(percent of sales)
(1.9)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 8.
S&P 500 Interest Expense
Page 6 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 185
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30
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S&P 500 INTEREST EXPENSE MARGIN(percent of EBITDA)
(9.3)
Source: Haver Analytics and Standard & Poor’s.
Figure 9.
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S&P 500 INTEREST EXPENSE MARGIN(percent of net income)
(22.1)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 10.
S&P 500 Interest Expense
Page 7 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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S&P 500 INTEREST EXPENSE MARGIN(percent of pretax income)
(16.4)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 11.
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S&P 500 INTEREST EXPENSE MARGIN(percent of pretax income without interest expense)
(14.1)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 12.
S&P 500 Interest Expense
Page 8 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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S&P 500 INTEREST EXPENSE(dollars per share)
Interest Expense*Pre-tax (22.30)After-tax (16.40)Net after-tax subsidy (5.90)
* After-tax interest expense and net after-tax subsidy are derived using the S&P 500’s effective tax rate for each yearSource: Haver Analytics and Standard & Poor’s.
Figure 13.
S&P 500 Interest Expense
Page 9 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 1880
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S&P 500 EBITDA (operating profit before depletion, depreciation, & amortization expense)(ratio scale, dollars per share)
EBITDA (238.5)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 14.
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S&P 500 EBITDA MARGIN(percent of sales)
EBITDA Margin (20.7)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 15.
S&P 500 EBITDA
Page 10 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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S&P 500 OIADP (operating profit after depletion, depreciation, & amortization expense)(ratio scale, dollars per share)
OIADP (169.7)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 16.
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S&P 500 OIADP MARGIN(percent of sales)
OIADP Margin (14.7)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 17.
S&P 500 OIADP
Page 11 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 1825
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S&P 500 DEPRECIATION & AMORTIZATION EXPENSE (DD&A)(ratio scale, dollars per share)
Depreciation & Amortization (67.7)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 18.
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S&P 500 DEPRECIATION & AMORTIZATION EXPENSE RATIO(percent of gross profit)
D&A Ratio (16.3)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 19.
S&P 500 Depreciation & Amortization
Page 12 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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S&P 500 PRETAX INCOME (operating income before taxes)(ratio scale, dollars per share)
Pretax Income (135.7)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 20.
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S&P 500 PRETAX PROFIT MARGIN(percent of sales)
Pretax Profit Margin (11.8)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 21.
S&P 500 Pretax Profit
Page 13 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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S&P 500 INCOME TAX(ratio scale, dollars per share)
Income Tax (35.9)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 22.
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S&P 500 EFFECTIVE CORPORATE TAX RATE*(percent)
Tax Rate (26.4)
* Derived from S&P Analyst Handbook, where tax rate is income tax as percentage of pretax income.Source: Haver Analytics and Standard & Poor’s.
yardeni.com
Figure 23.
S&P 500 Income Tax
Page 14 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 1840
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S&P 500 CASH FLOW(ratio scale, dollars per share)
Cash Flow (166.2)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 24.
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 186
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S&P 500 CASH FLOW MARGIN(percent of sales)
(14.4)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 25.
S&P 500 Cash Flow
Page 15 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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S&P 500 CAPITAL EXPENDITURES(dollars per share)
Annual Capex (left scale) (65.1)Quarterly Capex (right scale) (20.2)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 26.
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 181.00
1.25
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1.75
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2.75
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1.50
1.75
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2.50
2.75
3.00
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S&P 500 CASH FLOW TO CAPEX(ratio)
Cash Flow to CAPEX (2.6)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 27.
S&P 500 Capital Expenditures
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S&P 500 SALES TO CAPEX(ratio)
Sales to CAPEX (17.7)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 28.
S&P 500 Capital Expenditures
Page 17 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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S&P 500 LEVERAGE RATIOS
Leverage RatiosDebt to Assets (0.79)Debt to Equity (0.86)Interest Coverage (10.70)Net Debt to EBITDA (10.11)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 29.
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S&P 500 COMPONENTS OF LEVERAGE RATIOS(dollars per share)
Components of Leverage RatiosLeft scale
Total Debt (2900.33)Total Assets (3689.94)Long Term Debt (664.84)Total Equity (769.93)
Right scaleEbitda (238.54)Interest Expense (22.30)Cash & Equivalents (487.58)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 30.
S&P 500 Leverage Ratios
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94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18.90
.95
1.00
1.05
1.10
1.15
1.20
1.25
.90
.95
1.00
1.05
1.10
1.15
1.20
1.25
2016
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S&P 500 LIQUIDITY RATIOS
Liquidity RatiosCurrent Ratio (1.14)Quick Ratio (1.01)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 31.
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S&P 500 COMPONENTS OF LIQUIDITY RATIOS(dollars per share)
Components of Liquidity RatiosLeft scale
Current Assets (1633.59)Current Liabilities (1426.93)
Right scaleInventory (197.43)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 32.
S&P 500 Liquidity Ratios
Page 19 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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.35
.40
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2.75
3.00
3.25
2016
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S&P 500 ASSET MANAGEMENT RATIOS
Asset Management RatiosFixed Asset Turnover (2.30)Total Asset Turnover (0.32)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 33.
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S&P 500 COMPONENTS OF ASSET MANAGEMENT RATIOS(dollars per share)
Components of Asset Management RatiosFixed Assets (511.02)Total Assets (3689.94)Sales (1150.59)
Source: Haver Analytics and Standard & Poor’s Corporation.
Figure 34.
S&P 500 Asset Management Ratios
Page 20 / June 27, 2017 / Stock Market Briefing: S&P 500 Income Statement & Ratios www.yardeni.com
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