Results of non-financial corporations to 2021 Q2

Abstract

The information for the sample of firms reporting to the Central Balance Sheet Data Office Quarterly Survey (CBQ) evidences that in 2021 H1 firms’ activity clearly recovered, partly reversing the sharp contraction in 2020. Thus, between January and June 2021, ordinary profit posted significant increases, although without recovering its pre-pandemic levels. Employment also rebounded, driven by the rise in permanent hires and a smaller decline in temporary employment. Against this background, average profitability levels rose significantly, albeit remaining below the values recorded before the pandemic. The financial position indicators showed an increase in firms’ indebtedness across the sample in 2021 H1, leading to slightly higher average debt ratios, while the debt burden ratio resumed a downward path, assisted by the decline in the cost of outstanding debt and the increase in ordinary profit. Average liquidity ratios declined in most firms and sectors, following the sharp rise in the previous year. This article includes a box which analyses recent developments in trade finance granted and received by firms, concluding that the median for the average supplier payment and customer collection periods held steady in 2021 H1, slightly below pre-pandemic levels, after the increase observed in mid-2020. This may indicate that firms now have a more comfortable liquidity position, in a setting in which economic activity is gradually picking up.