By Dr. Arun Singh,
Chief Economist
Dun & Bradstreet India

CFO Optimism Index

Mumbai, September 21, 2020: A recent survey of Chief Financial Officers (CFOs) conducted by business decisioning data and analytics firm Dun & Bradstreet, found that the confidence in financial and macro-economic conditions has declined. The pan-India survey compared confidence levels from Q3 (Jul-Sep of the calendar year 2020) with the same quarter of the previous year. Based on the responses, the Dun & Bradstreet Composite CFO Optimism Index showed a decline of 15.0%, on a q-o-q basis to 74.2 during Q3 2020, bringing the Index to a record low.

  • The macroeconomic scenario sub index value at 87.5 is the lowest in nearly seven years, the index was at its lowest value of 77.5 during Q4 2013. The financial performance sub index is at its lowest value of 67.1 during Q3 2020
  • Optimism levels for financial performance of the company declined by 21.0% (q-o-q) and optimism level for macroeconomic scenario declined by 4.6% (q-o-q)
  • The percentage of CFOs expecting an increase in the operating margin (21%) and liquidity position (20%) of their companies is the lowest ever
  • The percentage of CFOs indicating a need for raising short-term funds (22%) and long-term funds (15%) is the lowest ever
  • 23% of CFOs expect the global macro-economic scenario to be favourable during Q3 2020, which is lowest in eight years
  • 41% of CFOs expect the domestic macro-economic scenario to be favourable during Q3 2020, up from 31% in Q2 2020
  • 68% of CFOs have stated cash flow management to be their priority in the next six months

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