The Financial Times (UK) reported yesterday that corporate profits have hit historical highs.

Corporate profitability rose to its historically highest level at the end of last year as manufacturing and service sector companies benefited from strong sales growth combined with lower energy prices and subdued wage pressures. Economists said soaring profitability in the fourth quarter augured well for business investment, underpinning the Bank of England’s strong growth forecast for this year.

What's even more to like is that the profits are achieved by both components of the profit equation. Profit = Revenues - Expenses and as the FT reports, profits are up because revenues have increased and because two major expenses have decreased.