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Profits share of non-financial corporations
Gross value added of Non-Financial Corporations remained virtually unchanged from €97.8bn in 2012 to €97.9bn in 2013. Nevertheless the operating surplus (B.2g/B.3g) or profits of the non-financial corporations decreased from €57.1bn in 2012 to €55bn in 2013 (see Summary Table). The other main component of value added (B.1g) is compensation of employees (D.1 Uses - wages and salaries) which increased from €39.6bn in 2012 to €41.7bn in 2013. This relative decline in profits compared to compensation of employees resulted in a reduced profit share of value added from 58.4per cent in 2012 to 56.2 per cent in 2013.
| Gross Value Added | Profits | Profit Share | |
| 2003 | 78.0907817809118 | 44.9446683684837 | 57.5543839407045 |
| 2004 | 82.0629986664243 | 46.540103217118 | 56.7126524419339 |
| 2005 | 88.1535928139342 | 49.1017120281313 | 55.7001824438062 |
| 2006 | 95.1509640392536 | 52.5572660239349 | 55.2356631954385 |
| 2007 | 101.537548539678 | 55.035960116311 | 54.2025693035169 |
| 2008 | 94.0253113855898 | 45.5202732176697 | 48.4127864581006 |
| 2009 | 86.5232861152639 | 43.7465090184817 | 50.5603878246185 |
| 2010 | 89.4364425948112 | 49.5177589022129 | 55.3664227529168 |
| 2011 | 95.6624007277816 | 55.5037590027591 | 58.0204537838241 |
| 2012 | 97.7710458633664 | 57.1013876378365 | 58.4031674547441 |
| 2013 | 97.8772256517807 | 55.0326760951973 | 56.226232127776 |
Investment
Expressing gross fixed capital formation as a percentage of gross value added gives the investment rate. The investment rate of the non-financial corporate sector decreased from 18.1 per cent in 2012 to 17.8 per cent in 2013 (see Figure 6 below). The trend in both aggregates was fairly flat in the period 2012 to 2013 with a slight increase in gross value added (€0.1bn) and a small decline in investment (€0.2bn). Consequently the investment rate decreased by 0.3 per cent in this period.
| Gross Value Added | GFCF | Investment Rate | |
| 2003 | 78.0907817809118 | 14.3348710930091 | 18.3566750979986 |
| 2004 | 82.0629986664243 | 16.5527308554117 | 20.1707604211448 |
| 2005 | 88.1535928139342 | 19.3093980486107 | 21.9042666693881 |
| 2006 | 95.1509640392536 | 19.4672333257283 | 20.4593127587202 |
| 2007 | 101.537548539678 | 20.6383882353881 | 20.3258681465244 |
| 2008 | 94.0253113855898 | 17.2267826401682 | 18.321431097976 |
| 2009 | 86.5232861152639 | 16.8778614439225 | 19.5067272658117 |
| 2010 | 89.4364425948112 | 13.6992753192288 | 15.3173302982241 |
| 2011 | 95.6624007277816 | 14.6610585276795 | 15.3258316915956 |
| 2012 | 97.7710458633664 | 17.7386310580724 | 18.1430308957335 |
| 2013 | 97.8772256517807 | 17.4680435224759 | 17.8468927844586 |
Return on equity
The return on equity is a measure of corporate profitability. It is the ratio of entrepreneurial income (B.4g) less taxes on income and wealth (D.5) to total equity liabilities (Table 3b – Balance Sheets AF.51). The various components are graphed in Figure 7.
| Entrepreneurial Inc excl current taxes | Equity Liabilities | Return on Equity | |
| 2003 | 41.3534144512628 | 158.695460194056 | 26.0583474793136 |
| 2004 | 43.0483654736775 | 164.342783924079 | 26.1942535265585 |
| 2005 | 44.2553403122605 | 177.141610806556 | 24.9830291769157 |
| 2006 | 46.6000516958968 | 203.88512792773 | 22.8560327913741 |
| 2007 | 48.356312100882 | 245.206282478814 | 19.7206660498432 |
| 2008 | 38.8365597527308 | 233.040788840562 | 16.6651340076357 |
| 2009 | 41.6836680878183 | 275.945276371621 | 15.1057733750376 |
| 2010 | 52.9662848737597 | 300.666741103586 | 17.6162766388291 |
| 2011 | 57.3735923322145 | 309.678456410445 | 18.5268271475017 |
| 2012 | 60.3369663148789 | 383.103540751 | 15.7495193588136 |
| 2013 | 57.9224691413641 | 480.771294193136 | 12.0478218730953 |
The impact of the redomiciled plcs or corporate inversions on this indicator is quite significant over the past few years and is a significant factor in explaining the downward trend in the rate of return. For example, practically all of the increase in the equity balance sheet position from €383bn in 2012 to €481bn in 2013 is related to the arrival of further relocating corporations. In fact since 2003 the equity position has risen from €159bn to €481bn in 2013 while the after tax entrepreneurial income has risen from €41bn to €58bn over the same period.
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