Operating Return Trends

Richard Skolnik

New York Economic Review, 2002, vol. 33, issue 1, 42-50

Abstract: This study examines the operating returns, margins and turnovers of non-financial S&P 500 companies from 1982-1999. At the aggregate level, operating return remains relatively stable during the time period and exhibits no trend. However, asset turnover displays a steady decrease, which is offset by increasing profit margins. The cross-sectional analysis indicates that although margin and turnover both contribute to superior return, margin is more highly correlated to return. Consistent with economic theory for a competitive equilibrium environment, margin and turnover are negatively correlated with each other in both the cross-sectional and time-series analyses. Operating returns do not exhibit a trend but they vary cyclically with changes in GDP.

Date: 2002
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.nyecon.net/nysea/publications/nyer/2002/NYER_2002_p042.pdf (application/pdf)
http://www.nyecon.net/nysea/publications/nyer/2002/NYER_2002_p042.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nye:nyervw:v:33:y:2002:i:1:p:42-50

Access Statistics for this article

New York Economic Review is currently edited by William P. O'Dea

More articles in New York Economic Review from New York State Economics Association (NYSEA) Contact information at EDIRC.
Bibliographic data for series maintained by Eryk Wdowiak ().