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Results of non-financial corporations to 2020 Q2

Author

Listed:
  • Álvaro Menéndez Pujadas
  • Maristela Mulino

Abstract

The Central Balance Sheet Data Office Quarterly Survey (CBQ) data for 2020 H1 show that the lockdown measures introduced in the context of the COVID-19 health crisis had a sharp adverse impact on activity, albeit with notable differences across the sample firms. This led to a sharp contraction in ordinary profit and profitability levels, resulting in a net loss in aggregate terms, something not seen in the CBQ since 2002. In addition, firms increased their indebtedness to fund larger operating deficits. The share of ordinary profit (Gross Operating Profit plus financial revenue) used for interest payments also rose slightly, reversing the downward trend of this ratio in recent years. The article includes a box that analyses firms’ liquidity needs in 2020 H1 as a result of the fall in activity, investment in real assets and debt repayments, and the financial deterioration recorded by these firms.

Suggested Citation

  • Álvaro Menéndez Pujadas & Maristela Mulino, 2020. "Results of non-financial corporations to 2020 Q2," Economic Bulletin, Banco de España, issue 4/2020.
    • Handle: RePEc:bde:journl:y:2020:i:12:d:aa:n:29
    Note: Analytical Articles
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    More about this item

    Keywords

    COVID-19; activity; earnings; financial position; non-financial corporations; liquidity needs;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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