profitability of UK companies has slumped by 40 per cent over the last three
years, falling for an unprecedented 12 consecutive quarters, according to new
the economy as a whole, the average return on capital – a leading measure of
profitability – fell from 10.84 per cent in the year to March 2001 to 8.37 per
cent this year.
motor trade was the worst hit with profit margins dropping by a third – from
9.23 per cent to 6.16 per cent – despite record car sales.
from business service firm Experian shows that IT and telecoms also suffered,
both recording a collapse in profitability of more than 30 per cent.
research looked at the profitability of more than 2,000 companies during its
Corporate Health Check.