"S&P Global estimates that global corporate margins have contracted by roughly 64 basis points, representing $907 billion in lost profit among companies covered by sell-side analysts. According to the report, companies are sacrificing profit margins to absorb rising costs but are also passing part of the burden to customers. Roughly $592 billion of profit loss is being transferred to consumers through higher prices, while about $315 billion is being absorbed internally as lower earnings."
"S&P Global's analysis factors in additional cost pressures: about $155 billion in forecasted expenses from "uncovered public firms" and another $123 billion from private equity and VC-backed companies. Adding these two figures to the initial $907 billion brings total projected 2025 costs to roughly $1.2 trillion. The study draws on forecasts from over 15,000 analysts tracking 9,000 public firms, representing around $111 trillion of the $130 trillion global equity market, or nearly 85% of its total value."
Forecasts project corporate expenses to rise by about $1.2 trillion in 2025 compared with expectations set in January. Global corporate margins have contracted roughly 64 basis points, equivalent to $907 billion in lost profit among sell-side-covered companies. Firms are transferring approximately $592 billion of profit loss to consumers through higher prices and absorbing about $315 billion internally as lower earnings. Additional forecasted expenses add roughly $155 billion from uncovered public firms and $123 billion from private equity and venture-backed companies. The forecasts incorporate input from over 15,000 analysts covering about 9,000 public firms representing roughly $111 trillion in market value.
#corporate-expense-inflation #profit-margin-contraction #pricing-pass-through-to-consumers #cfo-planning-and-forecasting
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