Monday, May 06, 2024 10:40:09 AM
‘Greedflation’ Statistics & Trends 2024
https://www.forbes.com/advisor/credit-cards/greedflation-statistics-2024/
John Egan
Personal Finance Expert
Doug Whiteman
Fact Checked
....
Corporate Profit Trends
Corporations initially launched small price increases to deal with rising demand during the pandemic, supply squeezes, and higher food and energy costs linked to the Russia-Ukraine war. But many companies later cranked up the increases, making numerous consumer products and services more expensive.
Corporate profits began to rise rapidly in the middle of the second quarter of 2020 before reaching a peak in the second quarter of 2022, and then continuing to trend upward through the end of 2023.
Brands That Have Raised Prices
As corporate earnings reports have rolled out in recent years, many brands have been accused of contributing to greedflation and engaging in corporate profiteering.
Accountable.US, which describes itself as a nonpartisan watchdog group, analyzed earnings data for the 10 largest retailers by market capitalization in April 2022 and found that not only did they raise consumer prices, but they collectively reported $24.6 billion in higher profits during their most recent fiscal years[11]. The following brands were cited for excessive net profit increases:
Amazon
Saw its net income increase by more than $12 billion in 2021, to over $33 billion
CEO pay ratio—comparing the chief executive’s pay to that of the company’s typical worker—increased from 58-to-1 to 6,474-to-1
Walmart
Saw net income increase by $163 million in the company’s 2022 fiscal year to over $13.6 billion
Shareholder payouts grew by $7.2 billion, to nearly $16 billion in 2022
Planned to spend at least $10 billion on stock buybacks in fiscal 2023
Home Depot
Reported a 27% increase in annual net earnings
Boosted stock buybacks by $14 billion and spent nearly $7 billion on shareholder dividends
Planned to increase quarterly dividends by 15%
Costco
Posted record-breaking $5 billion in net income
Boosted shareholder payouts by more than $4.5 billion to over $6.2 billion
Continues to see spikes in profits after earning $1.2 billion in net income in the second quarter of fiscal 2022, up $348 million from the previous year
Lowe’s
Saw 2021 net income jump 44% to $8.4 billion while spending $15.1 billion on shareholder payouts, including stock buybacks that were $1.1 billion higher than expected due to better-than-anticipated financial performance
CVS Health
Posted more than $7.8 billion in 2021 net income
Authorized a $10 billion buyback program and spent $2.6 billion on shareholder dividends
Target
Saw net earnings rise 59% in 2021
Used profits to boost buybacks by 887% while spending $1.5 billion on shareholder dividends
Other evidence of potential greedflation:
During one three-month period in 2022, Nestle hiked prices 9.5% and Procter & Gamble raised them 9%[12]. The companies represent two of the world’s largest consumer brands.
Coca-Cola bumped up prices by 11% in 2022, and Kraft Heinz notched a more than 15% price hike[13].
As Tyson Foods reported surging profits in May 2022, its CEO told reporters the company was “asking customers to pay for inflation.”.........................................
______________________________________________________________________________________________________
ICYMI: “Greedflation” Added to Dictionary.com
https://groundworkcollaborative.org/news/icymi-greedflation-added-to-dictionary-com/
Groundwork exposed “greedflation” as a key driver of higher prices beginning in 2021; Corporate greedflation continues to keep costs artificially high according to new Groundwork report
_____________________________________________________________________
.
https://www.forbes.com/advisor/credit-cards/greedflation-statistics-2024/
John Egan
Personal Finance Expert
Doug Whiteman
Fact Checked
....
Corporate Profit Trends
Corporations initially launched small price increases to deal with rising demand during the pandemic, supply squeezes, and higher food and energy costs linked to the Russia-Ukraine war. But many companies later cranked up the increases, making numerous consumer products and services more expensive.
Corporate profits began to rise rapidly in the middle of the second quarter of 2020 before reaching a peak in the second quarter of 2022, and then continuing to trend upward through the end of 2023.
Brands That Have Raised Prices
As corporate earnings reports have rolled out in recent years, many brands have been accused of contributing to greedflation and engaging in corporate profiteering.
Accountable.US, which describes itself as a nonpartisan watchdog group, analyzed earnings data for the 10 largest retailers by market capitalization in April 2022 and found that not only did they raise consumer prices, but they collectively reported $24.6 billion in higher profits during their most recent fiscal years[11]. The following brands were cited for excessive net profit increases:
Amazon
Saw its net income increase by more than $12 billion in 2021, to over $33 billion
CEO pay ratio—comparing the chief executive’s pay to that of the company’s typical worker—increased from 58-to-1 to 6,474-to-1
Walmart
Saw net income increase by $163 million in the company’s 2022 fiscal year to over $13.6 billion
Shareholder payouts grew by $7.2 billion, to nearly $16 billion in 2022
Planned to spend at least $10 billion on stock buybacks in fiscal 2023
Home Depot
Reported a 27% increase in annual net earnings
Boosted stock buybacks by $14 billion and spent nearly $7 billion on shareholder dividends
Planned to increase quarterly dividends by 15%
Costco
Posted record-breaking $5 billion in net income
Boosted shareholder payouts by more than $4.5 billion to over $6.2 billion
Continues to see spikes in profits after earning $1.2 billion in net income in the second quarter of fiscal 2022, up $348 million from the previous year
Lowe’s
Saw 2021 net income jump 44% to $8.4 billion while spending $15.1 billion on shareholder payouts, including stock buybacks that were $1.1 billion higher than expected due to better-than-anticipated financial performance
CVS Health
Posted more than $7.8 billion in 2021 net income
Authorized a $10 billion buyback program and spent $2.6 billion on shareholder dividends
Target
Saw net earnings rise 59% in 2021
Used profits to boost buybacks by 887% while spending $1.5 billion on shareholder dividends
Other evidence of potential greedflation:
During one three-month period in 2022, Nestle hiked prices 9.5% and Procter & Gamble raised them 9%[12]. The companies represent two of the world’s largest consumer brands.
Coca-Cola bumped up prices by 11% in 2022, and Kraft Heinz notched a more than 15% price hike[13].
As Tyson Foods reported surging profits in May 2022, its CEO told reporters the company was “asking customers to pay for inflation.”.........................................
______________________________________________________________________________________________________
ICYMI: “Greedflation” Added to Dictionary.com
https://groundworkcollaborative.org/news/icymi-greedflation-added-to-dictionary-com/
Groundwork exposed “greedflation” as a key driver of higher prices beginning in 2021; Corporate greedflation continues to keep costs artificially high according to new Groundwork report
_____________________________________________________________________
.
Two people you should never trust:
A religious leader who tells you how to vote.
A politician who tells you how to pray.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
