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International comparisons of company profitability
The article analyses the profitability of companies in the world’s economies, provides comparable data by economy, constructs league tables and looks at reasons for changes in company profitability.
In the third of an annual series of articles, data are presented on profitability in key sectors of the world's largest economies. The article analyses profitability in thirty-four countries who contributed data to the survey-fourteen countries for the first time. The analysis considers international profitability against the economic background of the imbalances between the manufacturing and service sectors.
Although there was a decline in corporate profitability in 2001, the United Kingdom non-financial corporate sector maintained fourth position in the world league table. Companies in Norway were the most profitable in the world, driven by companies in the service sector and in oil and gas exploration and production. Within the manufacturing sector, the profitability of UK companies fell to the bottom of the international league table. Profitability of UK service sector companies retained fifth place for the second year running, behind service companies in the United States, Norway, Finland and Spain.
Following data received for first time from France and Italy, a measure of company profitability in the Euro-area has been constructed. This indicator has been used to analyse the degree of convergence in rates of return with the United States and the UK. European companies are now more profitable than companies in the United States. The article also reviews profitability of industry in Canada, in Asia, countries seeking to join the European Community, Israel and, for the first time, Australia, South Africa, Iceland, Mexico and in China. The article also includes reviews of the profitability of products in Russia and the Competitive Trend Index in Ecuador.
Published in web format: 15 October 2002 at 9:30 am
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