Transcript Companies in the Chicago Area

Seeing Tomorrow – Companies
in the State of Illinois
The Impact of Macroeconomic Environment
Motivation
• Weaving on our theme “Seeing Tomorrow” we will focus on
macroeconomic environment impacting the companies headquartered in
Illinois.
• Based on long term data, we will forecast:
• Trend in assets growth (investment behavior)
• Capital accumulation determines increase in employment of labor
• “Extrapolating from the experience of the late 1990s, the NAIRU could be lowered by
as much as 1 full percentage point by a sustained $250 billion annual increase in
infrastructure investment. This could mean that more than 1 million additional
workers each year find employment”
--Economic Policy Institute
Motivation cont’d
• Trend in Revenue growth
• Indicator of aggregate demand and consumption level
• Trend in Profitability (earnings)
• Living standards of investors
• Further investment of companies
• The management efficiency of companies
• Public Companies:
• Private Companies:
• stock market listed corporations
• Private-held corporations or LLCs or LLPs
• COMPUSTATA data up to Feb 2015
• FACTSET data up to Feb 2015
Public
Private
Count of Illinois Companies
In Chicago Metro Area
Outside Chicago Metro Area
In Chicago Metro Area
Outside Chicago Metro Area
205
26
8,077
11,367
Public Companies – Chicago Headquartered
4.18%
or $81 Billion
Forecasts
2.25%
Forecasts
3.30%
Forecasts
Revenue of Chicago Public Companies in 2009 Dollars
0.53%
Forecasts
Financial
Manufacturing
Transportation
Retail
Illinois Public Companies
Level of Assets of Midwest Public Firms
Hot Zone of Revenue Generation
Management Efficiency
Assets Turnover Ratio =
𝑆𝑎𝑙𝑒𝑠
𝐴𝑠𝑠𝑒𝑡𝑠
in million dollars
Private-held companies by state
Concluding Remarks
• Publicly listed companies:
• The investment growth (asset growth) is expected to increase
• but may not beat the speed of GDP increase
• The revenue growth is also expected to increase in nominal terms
• but decline if purchasing power is considered
• The income growth is with more uncertainty, but is also expected to increase
on average.
• Employment is expected to increase. Mainly from the financial sector and
manufacturing sector.
Concluding Remarks (cont’d)
• High management efficiency ratio of Illinois public companies
• The data shows Illinois private-held companies generate highest
amount of Net Income among all states in the US.