Dun & Bradstreet Composite Optimism Index for Q1 2018
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 Q1 2018 (Jan-Mar of the calendar year 2018), 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 stands at 117 during Q1 2018, an increase of 7.7% on a q-o-q basis.
  • Optimism levels both for financial performance of the company and macroeconomic scenario witnessed an increase for the 2nd consecutive quarter.
  • Optimism levels for macroeconomic condition is the highest in 3 years.
  • Optimism level amongst CFOs in the industrial sector is the highest in 11 quarters and in the services sector, it is the highest in 5 quarters.
  • 39% of CFOs in the industrial sector indicated need for raising short term funds – highest in nearly 4 years.
  • 34% of CFOs indicated need for raising long term funds in Q1 2018 – highest since Q3 2015.
  • The percentage of CFOs who expect a decrease in the level of financial risk on company’s balance sheet is 13-quarter high in the services sector.
  • 61% of CFOs expect overall scenario for mergers and acquisitions to be favourable in Q1 2018 – highest since Q4 2014.
  • For four consecutive quarters, CFOs have stated that reducing cost has been their top priority while dividend declaration has been their least priority.
  • Effective recovery system has been the most preferred risk management tool by CFOs for four consecutive quarters.
  • Tightening credit appraisal mechanisms (29%) and Hedging (29%) are the least preferred risk management tool by CFOs for the next six months

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.