Results of Non-Financial Corporations to 2019 Q4. Preliminary Year-End Data

18 Pages Posted: 24 Aug 2020

Date Written: August 20, 2020

Abstract

According to the Central Balance Sheet Data Office Quarterly Survey, non-financial corporations’ activity lost momentum in 2019, resulting in a slowdown in job creation. However, the high inflow of dividends contributed to an increase in ordinary profit and, as a result, average levels of return on ordinary activities also grew. In addition, financing costs continued to decline, allowing the spread between the return on investment and this indicator to widen again. Extraordinary costs and revenue had an adverse impact on net profit, triggering a notable decline. Average debt ratios, expressed as both a percentage of assets and as a percentage of ordinary profit, continued to fall in 2019. The share of profits used to service debt also continued to decline and stands at a record low. The article contains a box analysing the recent developments in trade finance and the average supplier-payment and customer-collection periods.

Keywords: activity, earnings, financial position, non-financial corporations

JEL Classification: L25, M21, M41

Suggested Citation

Menéndez Pujadas, Álvaro and Mulino Rios, Maristela, Results of Non-Financial Corporations to 2019 Q4. Preliminary Year-End Data (August 20, 2020). Banco de Espana Article 9/20, Available at SSRN: https://ssrn.com/abstract=3678023 or http://dx.doi.org/10.2139/ssrn.3678023

Álvaro Menéndez Pujadas (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Maristela Mulino Rios

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

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