Answer This NOW: What is the Average Corporate Profit Margin? (percentage, debt)
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Just to clarify, are you talking gross profit margin, operating profit margin, or net profit margin?
I am looking forward to your explanation as to why the national average is important, as net profit margins can vary from a few percentage points for a local grocery store or the Ford Motor Company to 45% for the local jewelry store or the Apple corporation.
Frankly, it seems to me that the average profit margin for all U.S. corporations is akin to the average height of all athletes participating in the 2016 Summer Olympics - the range is so broad that the statistic appears to me to be meaningless.
I know that technology is high margin, some 25%, and retail is low margin, most about 4%, and some vary greatly depending upon regulation like banking and finance that can go from lucrative down to dead even in no time. On average I would guess 7% but it is only a guess.
Off the top of my head, I'll guess 8% net profit margin for the S&P 500 (large cap).
Small cap companies as a whole perform better than large cap over time insofar as their share prices are concerned, but that is different from comparing net profit margins between small and large cap, as investors will pay a price premium for small cap stocks that are poised for rapid growth.
I'll guess 5% net profit margin for the CRSP total us market (approximately all publicly traded companies in the USA).
Of course the answer varies widely based on the business. But a simple answer isn't useless. Just because a supermarket makes 3% profit and Apple makes 30% doesn't mean a "typical" figure is useless.
I think the typical net profit after taxes is in the 5% range. And the general public thinks it is much higher.
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