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Strategy

Macro Economics Through a Micro Economics Lens


by FEI Daily Staff

Finance leaders can collect and analyze hard to find competitor, customer, and supplier financial data in near real time with the correct tools to help them make more informed decisions. But now, you can use the power of firm level financials to paint broader pictures of the economy at large.

Finance leaders can often collect and analyze hard to find competitor, customer, and supplier financial data in near real time using tools to help them make more informed decisions.  But now, you can use the power of firm level financials to paint broader pictures of the economy at large.

What can our data tell you about the greater US economic engine and associated trends?

Below is a chart that shows a  very small sample of metrics that Calcbench maintains. The bars represent Year over Year aggregate changes in Revenues, Capital Expenditures,  Cost Of Revenue (aka Cost of Goods Sold), SG&A, Operating Expenses, Cash Dividends paid to shareholders and Cash.1,2

 

 


 

 

As you will see below in these two charts, the top 50 companies control 37.9% of all U.S. revenue in Q3 2014 versus 39% of all U.S. revenue in Q3 2013.

 

 


 

Capital Expenditures, may serve as an indicator of the confidence of a firm.  When taken as an aggregate, the confidence level of industry becomes apparent.  In Q3 2014 CAPEX grew by 12.4% over Q3 2013.  But looking at firms by size is quite telling.  Most firms are increasing  significantly (red circle)1.

 

 

Decreases in Capex (Sector)

  • SERVICES Personal
  • WATER TRANSPORTATION
  • NONOPERATING ESTABLISHMENTS
  • HEAVY CONSTRUCTION OTHER THAN BLDG CONST CONTRACTORS
Increases in Capex (Sector)
  • PIPE LINES (NO NATURAL GAS)
  • REPAIR SERVICES
  • AUTO DEALERS & GASOLINE STATIONS
  • CONTRACTORS RESIDENTIAL BLDGS
  • SERVICES AMUSEMENT & RECREATION
 


 

Average cash on the balance sheet is down by 2.6% YoY.  The chart below is aggregated by Sector (based on 2 digit SIC Code).  For this group of firms, we eliminated financials as they use cash in operations.

 


 

Expenses

Overall, Operating Expenses grew 7% Year over Year and Selling, General and Administrative Costs were up slightly more than 6% in the same period.  Looking by size of firm, the pattern seems to hold up.  Input costs are increasing for everyone.

 

 Pranav Ghai is the co-founder and CEO of Calcbench and this report was created using data analyzed via Calcbench’s Premium Suite. Sign up for a 2 week free trial at www.calcbench.com/trial