The optimism level of CFOs has been analysed in the survey on 12 parameters being operating margin, liquidity position, level of financial risk on company’s balance sheet, risk appetite, and others
The global recession has lowered the confidence of the finance community and pushed it to a nine-quarter low in Q4 2022, according to media report.
The Composite CFO Optimism Index for Q4 2022 had went down by 16.2 per cent on a year-on-year (y-o-y) basis. The Index, however, went up by 3.7 per cent on a quarter-on-quarter basis. The Composite CFO Optimism Index for Q4 2022 was recorded at 88.7, as per the Dun and Bradstreet India.
Also, the survey highlighted that a positive approach for the macroeconomic scenario has declined by 22.3 per cent y-o-y in the services sector. Meanwhile, it witnessed a surge by 2.5 per cent y-o-y in the industrial sector.
The optimism level for financial performance went down by 23.9 per cent on y-o-y and 19.8 per cent y-o-y in the services and industrial sector respectively.
The optimism level of CFOs has been analysed in the survey on 12 parameters being operating margin, liquidity position, level of financial risk on company’s balance sheet, risk appetite, need for raising short-term and long-term funds, cost of raising funds, availability of funds, domestic and global macroeconomic scenario, overall scenario for mergers and acquisitions and level of financial risks for corporate sector overall.
The results of survey quoted that seven out of the eight parameters under the financial performance sub-index deteriorated in Q4 2022 on a y-o-y basis. Whereas 48 per cent of CFOs expect the cost of raising funds from the market to rise in Q4 2022.