Large, profitable Technology companies represent an increasing share of corporate profits. This phenomenon has enabled the corporate debt to pre-tax profit ratio to remain relatively stable since Q4 2017 with a MEAN multiple of 4.6x and a MEDIAN multiple of 4.4x over the Q4 2017 – Q4 2020 period. The outlier was the data collected in April 2020 – the COVID trough – which measured 6.2x.
Charts are below. You may access the underlying data in Excel format HERE.