Corporate Profits After Tax (w/out IVA & CCAdj)
Why Use This Data Source In Your Models?
Corporate Profits After Tax (w/out IVA & CCAdj) serves as a pivotal metric for analysts and economists delving into the financial health of businesses and the overall economic landscape. This metric, devoid of inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj), provides a clear, unadulterated view of corporations' net earnings. For data scientists, it offers a nuanced perspective on corporate performance, enabling them to gauge profitability accurately. By studying this figure, analysts can discern trends in corporate earnings over time, offering crucial insights into economic stability and business sentiment. Policymakers rely on these insights to shape economic policies, ensuring they align with the realities of corporate profitability. Investors utilize this metric to assess the financial robustness of companies, aiding them in making informed investment decisions. Economists leverage this data to model economic forecasts, guiding governments and businesses in strategic planning. In essence, Corporate Profits After Tax (w/out IVA & CCAdj) serves as a reliable compass, guiding a myriad of stakeholders in understanding the financial landscape and making prudent, data-driven choices.
Corporate Profits After Tax (w/out IVA & CCAdj)
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Suggested Treatment:
Grain Transformation:
Source:
U.S. Bureau of Economic Analysis
Release:
Gross Domestic Product
Units:
Billions of Dollars, Seasonally Adjusted Annual Rate
Frequency:
Quarterly
Available Through:
12/31/2024
Suggested Treatment:
The data shows auto correlation and a non-normal distribution. The data should be differenced. While the Order Norm transformation, provides the best normality, the Yeo Johnson variable will also perform well.
Grain Transformation:
Data is able to be distributed by time and geography. The roll up method used is Sum.
Auto Correlation Analysis:
Data shows auto correlation indicating a need for differencing
The ACF indicates 1 order differencing is appropriate.
Following first order differencing, no further differencing is required based on the differenced ACF at lag one of 0.00
Trend Analysis:
The Kwiatkowski-Phillips-Schmidt-Shin (KPSS) test, KPSS Trend = 0.20 p-value = 0.01 indicates that the data is not stationary.
Distribution Analysis:
The Shapiro-Wilk test returned W = 0.73 with a p-value =0.00 indicating the data does not follow a normal distribution.
A skewness score of 1.83 indicates the data are substantially skewed.
Hartigan's dip test score of 0.07 with a p-value of 0.17 inidcates the data is unimodal
Statistics (Pearson P/ df, lower => more normal)
Auto Correlation Function
Auto Correlation Function After Differencing
Partial Auto Correlation Function
Seasonal Impact
Seasonal and Trend Decompostion
Citation:
U.S. Bureau of Economic Analysis, Corporate Profits After Tax (without IVA and CCAdj) [CP], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/CP, December 15, 2019.