No 6 • April 2015
First results for non-financial corporations in the
Central Balance-Sheet Database for 2014
Funding structure
In 2014 the capital ratio (equity / total assets) increased from
the previous year from 33.0% to 33.6% (Chart 1).
Developments were different by size class, with the capital
ratio of ‘Small and medium-sized corporations’ increasing by
2.5 percentage points (p.p.) and that of ‘Large corporations’
declining, influenced by a restructuring in the telecommunication sector.
By activity sector, the capital ratio in ‘Other services’ and
‘Transportation and storage’ declined (by 1.3 p.p. in both
sectors). The most significant increases were observed in
‘Industry’ (4.2 p.p.) and ‘Wholesale and retail trade’ (2.5 p.p.).
Public
corp. vs.
Private
corp.
Chart 1
Equity / total assets – as a percentage
Private
corp. by
size class
(excludes
nonfinancial Private corporations by economic
holdings)
activity
Banco de Portugal's Statistical Bulletin of April 2015 discloses
the first annual results for non-financial corporations in the
Central Balance-Sheet Database for 2014. These results are
computed using data from the Quarterly Survey of NonFinancial Corporations (ITENF) for the fourth quarter of 2014,
and make it possible to anticipate the final annual results
obtained through the Simplified Corporate Information (IES)
1
scheduled for October this year.
Private corporations
Public corporations (1)
Non-financial holdings
Other services
Transportation and storage
Wholesale and retail trade
Construction
Electricity, gas and water
Industry
Small and medium-sized corporations
Large corporations
TOTAL
0 10 20 30 40 50 60
2012 IV
2013 IV
2014 IV
(1) Public corp. not included in general gov. sector
The obtained funding / total assets ratio decreased from
39.2% in 2013 to 38.6% in 2014 (Chart 2). In ‘Small and medium-sized corporations’ this ratio declined by 2.3 p.p. from
2013, to 37.7%.
By activity sectors, ‘Industry’ declined the most, from 30.3%
to 26.7%, while ‘Non-financial holdings’ increased the most
(4.9 p.p.).
1
For further information on the compilation methodology used for this
information, see Supplement 2/2013 to the Statistical Bulletin of October
http://www.bportugal.pt/en2013,
available
at
US/Estatisticas/PublicacoesEstatisticas/Tumbnails%20List%20Template/Sup
lemento-2-2013-en.pdf.
2
STATISTICAL PRESS RELEASE • April 2015
Chart 2
Obtained funding / total assets – as a percentage
Gross return on investment in ‘Small and medium-sized
corporations’ stood at 6.6% in 2014, accounting for a 0.4 p.p.
increase from the previous year. ‘Large corporations’ saw a
0.7 p.p. decline in this ratio. However, the figure was higher
than that observed for ‘Small and medium-sized corporations’ (10.8%).
Public corporations (1)
Non-financial holdings
Other services
Transportation and storage
Wholesale and retail trade
Construction
Electricity, gas and water
Chart 4
EBITDA / (equity + obtained funding) – as a percentage
Industry
Small and medium-sized corporations
Large corporations
Private corporations
Public
corp. vs.
Private
corp.
Private
corp. by
size class
(excludes
nonfinancial Private corporations by economic
holdings)
activity
Public
corp. vs.
Private
corp.
Private corporations
By activity sector, there were declines in gross return on
investment in ‘Non-financial holdings’ (0.8 p.p.), ‘Construction’ (0.7 p.p.), and ‘Other services’ (0.4 p.p.). ‘Industry’
increased by 0.4 p.p. from 2013.
TOTAL
2012 IV
2013 IV
Private
corp. by
size class
(excludes
nonfinancial Private corporations by economic
holdings)
activity
0 10 20 30 40 50 60 70
2014 IV
(1) Public corp. not included in general gov. sector
As regards the composition of obtained funding (Chart 3),
there was a decline in the components of the securities market and credit institutions and financial corporations (0.8 p.p.
and 0.7 p.p. respectively). This reduction is partly offset by
debt to participated and participant companies (0.9 p.p.
increase).
Chart 3
Breakdown of obtained funding – as a percentage of assets
Public corporations (1)
Non-financial holdings
Other services
Transportation and storage
Wholesale and retail trade
Construction
Electricity, gas and water
Industry
Small and medium-sized corporations
Large corporations
TOTAL
0 2 4 6 8 10 12 14
(1) Public corp. not included in general gov. sector
2012 IV
2013 IV
2014 IV
45
40
35
30
2,4
2,2
2,2
13,3
13,2
14,1
18,2
17,1
16,4
6,2
6,8
6,0
2012 IV
2013 IV
25
20
15
10
5
0
2014 IV
Securities market
Credit institutions and financial corporations
Participated and participant companies
Other funders
Cost of obtained funding and financial
pressure
The cost of obtained funding (interest expenses / obtained
funding) stood at 4.1% in 2014, which corresponds to a 0.1
p.p. reduction from the previous year (Chart 5).
Chart 5
Interest expenses / obtained funding (total corporations) - as
a percentage
Gross return on investment
2
In 2014 gross return on investment (EBITDA / capital in3
vested ) was 7.1%, accounting for a 0.2 p.p. reduction from
2013 (Chart 4). The trend of return was influenced by the
effects of a restructuring in the telecommunication sector in
2014, which impacted on ‘Large corporations’ and on the
‘Non-financial holdings’ and ‘Other services’ activity sectors.
7
6
5
4
3
2
1
0
2
EBITDA stands for earnings before interest, tax, depreciation and amortisation.
3
Capital invested is the sum of equity and obtained funding.
I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV
2007
2008
2009
2010
2011
2012
2013
2014
3
STATISTICAL PRESS RELEASE • April 2015
In line with the trend of the cost of obtained funding, finan4
cial pressure declined from 2013 to 2014 (Chart 6). In 2014
EBITDA was 3.3 times higher than the amount of interest
expenses in the same period, compared with 3.2 in 2013.
Chart 7
Interest expenses / obtained funding (as a percentage) and
EBITDA / interest expenses (number of times) – by activity
sector
5,0
Chart 6
Interest expenses / obtained funding (as a percentage) and
EBITDA / interest expenses (number of times) – total corporations
2012
2012
4,5
2014
5
2013
2013
2014
interest
expenses /
obtained
funding
4,5
2012
4,0
2013
2012
interest
expenses /
obtained
funding
2013
2014
3,5
2014
4
3,0
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
EBITDA/interest expenses
3,5
2
2,5
3
3,5
4
Industry
Construction
Other services
EBITDA/interest expenses
For ‘Industry’ and ‘Other services’ the cost of obtained funding followed a downward trend, accompanied by a reduction
of financial pressure (Chart 7). For ‘Construction’, this trend
was reversed in 2014, with a rise in the cost of funding and
financial pressure.
Days accounts payable and days accounts receivables
In 2014 days accounts payable stood at 68 and days accounts receivables at 67, which corresponds to a decline by 4
and 2 days respectively from 2013 (Chart 8).
This trend determined a decline in the differential between
days accounts payable and days accounts receivables, which
was 1 day in 2014.
Chart 8
Days accounts payable and days accounts receivables –
number of days
80
70
60
50
40
30
20
10
0
IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV
2006 2007
2008
Differential
4
Percentage of EBITDA absorbed by interest expenses, the reverse of the
EBITDA / interest expenses ratio.
2009
2010
2011
Days accounts receivables
2012
2013
2014
Days accounts payable
4
STATISTICAL PRESS RELEASE • April 2015
Although the differential between days accounts payable
and days accounts receivable narrowed, net financing by
5
trade creditors stabilised as a percentage of total assets at
around −2% (Chart 9).
Chart 9
Share of trade debtors and trade creditors in total assets –
as a percentage
14
12
10
8
6
4
2
0
-2
-4
IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV
2006 2007
2008
Differential
2009
2010
2011
Trade debtors
2012
2013
2014
Trade creditors
5
This corresponds to the differential between the trade creditors balance
and the trade debtors balance.