Corporate profits down in Q4, but up 11.4% YOY

Corporate profits in Q4 came in at $1.369 TT annualized-down from $1.416 TT in the third quarter. Profits in Q4 were down an annualized 12.6%.  Profits are after tax but without inventory valuation and capital consumption adjustments. Corporate profits are up 11.4% YOY, compared to up 27.2% in the Q3. Via BEA:
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $38.2 billion in the fourth quarter, compared with an increase of $26.0 billion in the third quarter. Current-production cash flow (net cash flow with inventory valuation adjustment) -- the internal funds available to corporations for investment -- increased $36.9 billion in the fourth quarter, in contrast to a decrease of $68.4 billion in the third.

Taxes on corporate income decreased $1.3 billion in the fourth quarter, in contrast to an increase of $23.8 billion in the third. Profits after tax with inventory valuation and capital consumption adjustments increased $39.5 billion in the fourth quarter, compared with an increase of $2.2 billion in the third.

Dividends increased $8.9 billion, compared with an increase of $8.1 billion; current production undistributed profits increased $30.6 billion, in contrast to a decrease of $5.9 billion.

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