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Statistical Press Release – Economic and financial indicators of private non-financial corporations - 2017

Today, Banco de Portugal publishes, in Table A.22 of the Statistical Bulletin and in BPstat, the economic and financial indicators of private non-financial corporations for 2017.

The statistics published herein incorporate data from the Simplified Corporate Information for 2017. The indicators were also revised for the entire period available so as to incorporate non-response estimates and the harmonisation of concepts with the data to be published in the Sector Tables until the end of this month.

Return on equity in private non-financial corporations reached 9.0 per cent in 2017, 2.2 percentage points (pp) above the value observed in 2016 (Chart 1).

The capital ratio (equity as a percentage of assets) increased by 1.0 pp to 33.2 per cent. Simultaneously, the weight of loans in total assets declined by 1.3 pp to 31.3 per cent. The cost of debt (financing expenses / obtained funding) stood at 3.7 per cent, corresponding to a decline of 0.3 pp.

The reduction in indebtedness and cost of debt and the increase in profitability resulted in a general improvement in funding ratios. In particular, the financing expenses coverage ratio (EBITDA1 / financing expenses) increased from 5.0 to 6.1.

As regards risk indicators, 2017 saw a reduction in the share of corporations with negative EBITDA (-1.0 pp to 30.3 per cent), with financing expenses above EBITDA (1.1 pp to 14.7 per cent), with negative net profits (1.3 pp to 36.2 per cent) and with negative equity (0.4 pp to 26.5 per cent).

By size and activity sector, SMEs and accommodation and food services generally presented the leading shares of corporations with those risk indicators (Chart 2).

Next update: 20 Nov. 2019


1 Earnings before interest, taxes, depreciation and amortisation.