Dun & Bradstreet Composite CFO Optimism Index at a 7 quarter high: D&B India’s CFO survey
Around 60% of CFOs expect liquidity position of their company to improve – highest in 8 quarters. According to the pan India survey of corporate CFOs in which they were asked about their confidence in the overall financial and macro-economic conditions for Q4 2016 (Oct-Dec of the calendar year 2016), 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 survey also tried to capture the CFO’s viewpoint regarding adoption of technologies. The survey revealed interesting facts about CFOs’ perspective on the overall Business Climate.
  • Dun & Bradstreet Composite Optimism index at a 7- quarter high
  • CFOs in the services sector continued to remain more optimistic than the industrial sector for Q4 2016 – the second quarter in a row.
  • While optimism level of CFOs in the services sector declined for the macroeconomic condition, CFOs in the industrial sector remained optimistic for both the financial condition and the macroeconomic scenario.
  • Optimism level on the financial performance of the company which had fallen in Q3 2016 for the CFOs in the industrial sector, turned positive in Q4 2016, while it continued to remain positive for the CFOs in the services sector.
  • More than 3/4th of the CFOs expect level of financial risks on company's balance sheet to decrease or remain unchanged in Q4 2016 as compared to last year.
  • Around 54% expect cost of raising funds from the market to decrease for Q4 2016 - highest since Q2 2012.
  • Effective recovery system (88%) followed by increase in close monitoring of strategic accounts (86%) emerged as the most preferred risk management tools during the next six months.
  • Around 87% of CFOs in the services sector consider risk management to be their priority for the next six months as compared to 71% of CFOs in the industrial sector.
  • Around 90% of the CFOs in the services sector stated increase in close monitoring of strategic accounts during the next six months as against 81% of the CFOs in the industrial sector.

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.

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