Based on the most recent figures, which of the following categories of industry classifications has the greatest
Question:
- Based on the most recent figures, which of the following categories of industry classifications has the greatest profits?
- Financial or nonfinancial
- The most recent data is for the third quarter of 2022. There are two-line items labeled financial and non-financial. Non-financial has the greater profits for both. The first set is found on line 3 for financial with a value of $462.5 billion and line 4 for non-financial with a value of $2,090.7 billion. Non-financial has a greater value by $1628.2 billion more than the financial industry.
- Line 10 is also labeled financial with a value of $555.8 billion. Line 13 is labeled non-financial with a value of $2284.3 billion. Non-financial has greater profits by $1729.5 billion.
- Manufacturing, transportation and warehousing, wholesale trade, or retail trade
- The profits for the third quarter of 2022 for manufacturing are $635.7 billion. The next highest profits are in retail trade with $312 billion. Then wholesale trade has profits of 229.8 billion. Lastly, transportation and warehousing have profits of $121.6 billion. Manufacturing has the greater profits by $323.7 billion over the next highest profit industry of retail trade.
- Durable goods or nondurable goods
- Durable goods have profits of $358.3 billion and nondurable goods have profits valuing $277.4 billion. Durable goods have greater than nondurable goods profits by $80.9 billion.
- Financial or nonfinancial
- During the past years, which sectors had the largest and smallest percentage increase in profit?
From the year 2020 to the year 2021 Transportation and warehousing had the largest percentage increase in profit of 147% increase.
Wholesale trade had the smallest percentage increase in profit from 2020 to 2021 of only 11.9%.
- Which sectors, if any, experienced losses?
None of these sectors experienced losses from 2020 to 2021. If we look at the last quarter of 2022 the first financial industry listed experienced a loss of 1.8 billion and the other financial industry experienced a loss from the first quarter of 2022 to the second quarter and only had a small increase from second quarter to the third quarter. Transportation and warehousing had a 2.8 billion dollar loss in the third quarter.
- What are the implications of the profit changes for expansion or contraction of the particular industries?
None of the industries listed in this discussion have experienced losses from 2020 to 2021, but if you look at the data for the last three quarters provided for the year 2022, the financial industry has decreased in profits from quarter 1 to quarter 2 and did not fully recover in quarter 3.
Wholesale trade had a loss from the first quarter to the second quarter, but they made up for that in the third quarter of 2022.
Transportation and warehousing had remarkable improvements from 2020 to 2021 but did have a decrease in profit from second quarter to third quarter of 2022.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill