THE PROFIT SQUEEZE: It Is More Apparent Than Real

THE PROFIT SQUEEZE

A PRESSING question for every U.S. businessman, to say nothing of his stockholders, is: how will profits be in the near future? Very often the answer is gloomy. Executives mutter about the "profit squeeze" and "profitless prosperity," point ominously to figures showing that while sales increased more than 100% in ten years, net profits declined from 5.2% of sales in 1947 to only 3.5% last year. But the figures are misleading. The so-called profit squeeze is more apparent than real, simply because companies are spending so much money on replacement and expansion programs that have cost $264 billion since...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!