Monday, November 2, 2015

The 2000 Largest US Companies 2014 Total Audited US GAAP Earnings Were $1 Trillion and 128 Billion Under the Obama Administration, a Miraculous Recovery From the 2008 Total Audited US GAAP Losses of $40 Billion in George Bush/Dick Cheney's Last Presidential Year ..... Total Audited US GAAP Earnings of $2 Trillion and 383 Billion for the Two-Years 2013-14 Up More Than $2 Trillion From the Total Audited US GAAP Earnings of $381 Bil for the Two-Years 2008-09

2014 Total Audited Earnings:
  • Up 13% Over 2012
  • Up 22% Over 2011
  • Up 37% Over 2010
  • Up 168% Over 2009
  • Up 2,886% Over 2008
  • Up 67% Over 2007

Two Year Total Earnings:
….. 2013-14           2,383,131,000,000
….. 2008-09              380,714,000,000
………. Two Year Earnings Increase
…………....... Amount           2,002,417,000,000
………………...... % 526%

BUT 2014 Total Audited Earnings:
  • Down 10% From 2013
In my previous posts I addressed in 100 layers the largest US Companies in Stock Market Capitalization.  These 2,000 US Companies all had Stock Market Caps above US$ 656 Mil and excluded all Utility Companies.

 Below here are the Total Audited Earnings (Losses) From Continuing Operations from these previous posts combined:

 2014 2013 2012 2011 2010 2009 2008 2007

US GAAP US GAAP US GAAP US GAAP US GAAP US GAAP US GAAP US GAAP

Audited Audited Audited Audited Audited Audited Audited Audited

Net Net Net Net Net Net Net Net
Income Income Income Income Income Income Income Income
100 US Company Largest Layer Totals (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)
 $ mils  $ mils  $ mils  $ mils  $ mils  $ mils  $ mils  $ mils









100 Largest (#1 - #100)       627,653       650,857       568,947       581,687       516,202       357,164       170,905       402,626
100 Second Largest (#101 - #200)       144,539       136,407       115,024       107,233         93,357         60,860         37,266       106,684
100 Third Largest (#201 - #300)         81,724         82,233         68,773         70,945         65,910         19,030       (38,903)         19,666
100 Fourth Largest (#301 - #400)         55,529         59,607         55,503         57,692         40,996         21,523       (23,845)         44,304
100 Fifth Largest (#401 - #500)         43,898         50,358         45,318         34,244         35,203         33,719              801         26,959
100 Sixth Largest (#501 - #600)         32,260         29,827         23,351         19,021         19,240           7,342         (8,686)         14,467
100 Seventh Largest (#601 - #700)         28,767         26,057         16,585         10,383         19,483              243         (8,105)         15,296
100 Eigth Largest (#701 - #800)         20,134         19,717         15,303         14,753         13,847           7,946            (812)         10,678
100 Ninth Largest (#801 - #900)         15,949         13,542         13,128         10,687           8,349         (1,334)         (6,866)           8,627
100 Tenth Largest (#901 - #1000)         10,890         10,572           7,648           3,669           6,329         (1,150)         (4,915)           5,671
100 Eleventh Largest (#1001 - #1100)         20,452         92,556         25,552       (10,903)         (6,253)       (68,687)       (60,691)           9,266
100 Twelfth Largest (#1101 - #1200)           7,413           6,638           7,461           5,247           3,234           1,963         (4,683)           3,812
100 Thirteenth Largest (#1201 - #1300)           8,508           7,603           6,906           7,445           5,120           1,714       (10,203)           5,786
100 Fourteenth Largest (#1301 - #1400)           3,743           3,551           4,631           4,656           5,836              892            (531)           4,876
100 Fifteenth Largest (#1401 - #1500)         12,989         54,278         17,564         (1,830)       (11,081)       (20,887)       (54,599)         (1,969)
100 Sixteenth Largest (#1501 - #1600)           5,940           2,783           4,296           1,431           2,758            (344)         (4,220)            (584)
100 Seventeenth Largest (#1601- #1700)              699         (1,246)         (1,659)           4,907           2,268           1,309         (6,937)           1,389
100 Eighteenth Largest (#1701 - #1800)           3,401           4,111            (779)           2,186           2,163              (65)         (6,086)         (1,472)
100 Nineteenth Largest (#1801 - #1900)           1,430           1,805           2,524           2,773           3,066           1,080              252           3,559
100 Twenteeth Largest (#1901 - #2000)           2,518           3,440                17            (556)                32         (1,105)         (9,640)         (2,165)









Total 2000 Largest US Companies    1,128,435    1,254,696       996,093       925,668       826,060       421,213       (40,499)       677,476









Annual Earnings % Changes:







….. 2014 vs 2013 -10%






….. 2014 vs 2012 13%






….. 2014 vs 2011 22%






….. 2014 vs 2010 37%






….. 2014 vs 2009 168%






….. 2014 vs 2008 2886%






….. 2014 vs 2007 67%















Two Year Total Earnings:







….. 2013-14    2,383,131






….. 2008-09       380,714






………. Two Year Earnings Increase







………….. Amount    2,002,417






………………. % 526%







From the above nearly all audited by very prestigious Big 4 CPA Firms US GAAP earnings numbers, it should be clear that the 2,000 largest US Companies have recovered miraculously from the 2008 worldwide financial meltdown.  And when the 2,000 largest US Companies registered $40 Bil Total Losses in 2008, a financially astute person could only conclude that the US economy was headed for a deep, prolonged depression.

These $40 Bil of Total Losses in 2008 increase dramatically as company stock market caps decline.  The Top 200 US Companies generated 2008 Total Earnings of $208 Bil, whereas the bottom half of these 2,000 (#1001-2000) registered 2008 Total Losses of $157 Bil.
  
Not only have the Total Audited Earnings (Losses) of these 2,000 largest US Companies recovered in only two years by 2010 all that they lost with the 2008 financial meltdown, but also by 2014 they added another 67% from their previous annual high in 2007 before the financial meltdown hit.  
 
It is pretty clear to me that the major drivers of this wholescale, massive earnings recovery from the disastrous 2008 financial meltdown were prescient steps taken by the Obama Administration and by the US Fed.
 
That's why financially astute people know that they want a continuation of the economic policies of the Obama Administration and Democratic US Senate and US House Candidates should run on these incredible economic accomplishments, instead of running away from the Obama Administration, with such a near-sighted strategy costing many of them dearly in past elections.

On the huge downside here, the Total Audited Earnings of these 2,000 largest US Companies for 2014 were down 10% from 2013.  This points to the clear necessity of both the TransPacific and TransAtlantic Trade Partnerships to pass.  The last thing the US economy needs is a President against these two key Trade Agreements, which will drive the growth of company earnings globally for many years to come.

But guess what?  The two leading Democratic Presidential candidates and one of the leading Republican candidates have all boldly announced that they are against the TransPacific Trade Partnership.

I'll make a prediction.  The next US President will eventually in the general election campaign be fervently for craftfully-designed and balanced TransPacific and TransAtlantic Trade Agreements.  Financially astute voters know of the necessity of company profit growth for a successful capitalistic system.  Since the US Congress has made it clear that it will not pass either economic stimulus or corporate tax reform, all that is left to substantially spur company profit growth are wisely-designed Trade Agreements.  I don't like saying this but absent the TransPacific and TransAtlantic Trade Agreements, just like what has happened in each of the most recent 7 quarters, Total US GAAP Earnings of US Companies will continue to decline, which will eventually also lead to continuing higher US unemployment.  US Companies don't hire employees when their earnings decline.  Instead, they lay people off.  It's that simple.   

=========================

In analyzing this Top 2,000, I find it amazing how many of the 2,000 are REITs.  Also, the overwhelming majority of Oil & Gas companies are doing quite well on the earnings front in 2014.  Many of them have significant Hedging Gains.  It also amazes me how many of the very successful smaller companies on the 2014 earnings front are headquartered in Houston, Texas.  Like the San Francisco/Silicon Valley area, Houston is also doing quite well on the entrepreneurial front.

Next up, drilling down below the above 2,000 largest US Companies.






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