Dun & Bradstreet Composite Optimism Index for Q4 2017
Only 26% of CFOs indicated need for raising short term funds in Q4 2017 – lowest since Q2 2012 Dun & Bradstreet, the world’s leading provider of global business information, knowledge and insight conducted a pan India survey of Chief Financial Officers (CFOs) in which they were asked about their confidence in the overall financial and macro-economic conditions for Q4 2017 (Oct-Dec of the calendar year 2017), as compared to the same quarter of the previous year. The survey reveals how optimistic the CFOs are with respect to the overall financial health of their respective companies, the business risk environment and the macroeconomic scenario in the country.
  • The Composite CFO Optimism Index for Q4 2017 increased by 3.1% on a q-o-q basis. However, it declined by around 10.5% on a y-o-y basis
  • During Q4 2017, the optimism level of the services sector increased by 4.1% (q-o-q), a 5-quarter high, while the optimism level of the industrial sector increased by 3.3% (q-o-q), a 6-quarter high
  • 50% of CFOs in the services sector expect global macro-economic scenario for corporate sector to improve - highest since Q1 2015.
  • 55% of CFOs are optimistic about the liquidity position of the company – highest since Q1 2017
  • 52% of CFOs in the industrial sector expressed optimism about overall scenario for mergers & acquisitions in Q4 2017 – highest in 3 years
  • 30% of CFOs in the industrial sector expect risk appetite to increase in Q4 2017 - highest in 13 quarters
  • Dividend declaration (11%) continued to be the least priority for 3 consecutive quarters
  • Effective recovery system has been the most preferred risk management tool while tightening credit appraisal mechanisms has been the least preferred risk management tool by CFOs for two consecutive quarters
  • Percentage of CFOs in the industrial sector indicating effective portfolio management to be their risk management tool in the next six months is the lowest since Q3 2014

Dun & Bradstreet’s CFO Optimism Index

Measuring CFO Optimism Level

Dun & Bradstreet is pleased to bring out the D&B CFO Optimism Index for India. In an increasingly globalised and competitive business environment, it becomes extremely important to gauge the financial perspective of the corporate and how they perceive the overall macroeconomic scenario and the evolving risks to their business. As the CFOs are responsible for ensuring and maintaining the financial health of the company, a pan India survey would be a critical tool to enable us to understand the financial condition in the near term as perceived by the CFOs. The D&B CFO Optimism Index is arrived at on the basis of a quarterly survey of CFO expectations regarding the financial state of their company as well as overall macroeconomic scenario. Dun & Bradstreet’s CFO Optimism Index tries to estimate the optimism level of the CFOs about the performance of their companies and the overall macroeconomic scenario as well as the CFO’s short-term priorities on a quarterly basis. A pan India survey is conducted on CFOs in the industrial and services sector on a quarterly basis.