Canada Corporate Profits q/q

Canada Corporate Profits q/q reflect a change in profits earned by Canadian corporations before taxes, in the specified quarter compared to the previous one. It is calculated based on quarterly financial reports of Canadian companies and additionally reflects statistics compiled by state statistical agencies. Overall profits earned by companies are estimated based on open data on assets, liabilities, companies' revenue and expenses items.

Calculation of Canada's Corporate Profits serve two broad objectives. The first measures the financial stability and performance of incorporated businesses by industries. The Canadian economy is divided into sectors, which include financial corporations, non-financial corporation sector, public sector, households and non-profit institutions. Their performance data show trends in the creation and distribution of wealth, as well as financing of economic activity. Corporate profit demonstrates the medium-term activity of Canadian industry, and also provides important information for investors.

The second broad objective is to provide information for evaluating the country's balance of payments and financial resources circulating in the economy.

The interest on borrowed funds is excluded from the calculation.

Growth in corporate profits can be seen as positive for the Canadian dollar.