Note on Industry and Company Profitability

Describes aggregate profitability in U.S. manufacturing between 1971 and 1990, and indicates that individual corporate profits are a function of both industry attractiveness and the firm's competitive position within its industry. Statistics on ROA, ROE, and ROS in American industries reinforce that differences in profitability may be sustained for long periods. Also charts ROS against firm size in several industries to illustrate positioning. Uses the semiconductor industry as an example.