U.S. Corporate Profits, 1950–2024

Table of Contents

1. Frontmatter

2. Chapter 1. Cost-Based Profits

   Ednaldo Araquém Silva

   Abstract

   I analyze the econometric relationship between revenue and total costs for major US corporations. I conduct a regression analysis of 71 companies, using a reduced-form equation to determine the operating profit markup for each sampled company. There is a simple arithmetic relationship between the profit markup and the profit margin.

3. Chapter 2. Time-Invariant Markup

   Ednaldo Araquém Silva

   Abstract

   This chapter follows the classical economic framework, highlighting the causal relationship between a company’s cost structure and operating profits. Kalecki (1965, Ch. 1, “Cost and Prices”) is my principal theoretical inspiration. From this perspective, revenue (REVT) and operating profits (OIBDP), often referred to as the “profits of enterprise,” are fundamentally influenced by XOPR.

4. Chapter 3. Petroleum and Natural Gas Exploration

   Ednaldo Araquém Silva

   Abstract

   Industry analysts categorize the petroleum industry into three major segments: upstream, midstream, and downstream. While these segments are distinct, assuming no overlap or interaction between them is unrealistic. Many corporations operate as vertically integrated conglomerates, controlling multiple parts of the supply chain.

5. Chapter 4. Beverages

   Ednaldo Araquém Silva

   Abstract

   The US beverage industry has an oligopolistic market structure, with three major players dominating the market: Coca-Cola, PepsiCo, and Brown-Forman. These corporations control a significant market share and possess substantial pricing power, deeply entrenched distribution networks, and brand recognition.

6. Chapter 5. Manufacturing

   Ednaldo Araquém Silva

   Abstract

   Economics emerged as a science with the rise of manufacturing, which has long served as the cornerstone of capitalism. While agriculture, trade, and finance each played indispensable roles in shaping modern economic systems, the expansion of industrial production (mass production, division of labor, and mechanization) grounded economics in measurable, empirical analysis. From Adam Smith’s pin factory to Marx’s relative surplus value theory, manufacturing has been a conceptual scaffold for economic thought.

7. Chapter 6. Pharmaceutical

   Ednaldo Araquém Silva

   Abstract

   The pharmaceuticals industry represents another oligopoly, distinct in its reliance on two primary sources of intangibles: research and development (which generates manufacturing intangibles) and advertising, promotion, and detailing (which yield marketing intangibles). These twin pillars, innovation and influence, differentiate the pharmaceutical sector from other manufacturing-intensive industries and create a complex structural profile.

8. Chapter 7. Chemicals and Allied Products

   Ednaldo Araquém Silva

   Abstract

   The chemicals industry is at the intersection of raw material transformation and advanced industrial applications. It shares operational and structural characteristics with the petroleum and pharmaceutical sectors. Like them, it is dominated by oligopolies—large, vertically integrated corporations with extensive global operations and proprietary technologies. These corporations produce industrial gases, specialty polymers, agricultural fertilizers and consumer household products.

9. Chapter 8. Petroleum Refining

   Ednaldo Araquém Silva

   Abstract

   Petroleum refining is the downstream segment of the oil and gas industry. This chapter examines seven corporations engaged in large-scale petroleum refining: Chevron, CVR Energy, ExxonMobil, HF Sinclair, Par Pacific Holdings, Trecora Resources, and Valero Energy.

10. Chapter 9. Machinery and Equipment

    Ednaldo Araquém Silva

    Abstract

    This chapter examines four legacy corporations in the machinery and equipment industry: Caterpillar, Clark Equipment, Cummins, and Deere & Co. These corporations occupy critical positions in the US industrial landscape. Their product lines include tractors, engines, construction equipment, and mechanical systems used across infrastructure, agriculture, and logistics.

11. Chapter 10. Computer Equipment and Electronic Devices

    Ednaldo Araquém Silva

    Abstract

    This chapter examines eight corporations in the computer equipment and electronic devices sector: AMD, Apple, Applied Materials, Cisco, HP, Intel, Nvidia, and Xilinx. These corporations operate across microprocessor design, semiconductor fabrication, computing infrastructure, and specialized hardware components. Their products form the base layer for modern digital systems, ranging from consumer electronics to data centers, and artificial intelligence.

12. Chapter 11. Transportation Equipment

    Ednaldo Araquém Silva

    Abstract

    This chapter analyzes eight legacy corporations in the transportation equipment industry: Aerojet Rocketdyne, American Motors, Curtiss-Wright, Dana, Ford Motor, General Motors, Honeywell International, and Navistar International. These corporations include aerospace systems, automotive manufacturing, propulsion, and defense-related equipment. They are long-standing participants in the US industrial base.

13. Chapter 12. Government Contractors

    Ednaldo Araquém Silva

    Abstract

    In The Fiscal Crisis of the State (1973), James O’Connor divided the US economy into three market segments, identifying oligopolies as dominant in two. These were the competitive sector, not represented in SEC filings, and the oligopoly sector selling to government agencies.

14. Chapter 13. Computer Services

    Ednaldo Araquém Silva

    Abstract

    The computer services industry includes corporations that emerged during the second wave of high technology following World War II. This evolution followed the initial growth of Fairchild Semiconductor and International Business Machines Corp (IBM)-associated corporations and gave rise to a broad sector encompassing software enterprises, computer networks, and computer-related devices. These corporations supply infrastructure and platform-level services, enabling connectivity, automation, and digital productivity across industries.

15. Chapter 14. Book Summary

    Ednaldo Araquém Silva

    Abstract

    This chapter presents the overall results of the regression analysis conducted across 71 major US corporations from 1950 to 2024. The analysis used the reduced-form regression model (Eq. 1.2) to estimate the slope coefficient λ₁, which reflects the long-run operating profit markup before depreciation and amortization. The data cover 11 distinct industries, including petroleum, manufacturing, pharmaceuticals, chemicals, computing, defense contracting, and services.

16. Backmatter