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Statistical Press Release – Statistics on corporations in the Central Balance Sheet Database – 1st quarter of 2019

Today, Banco de Portugal publishes statistics, in Table A.19 of the Statistical Bulletin and in BPstat, on corporations in the Central Balance Sheet Database for the first quarter of 20191.

In the first quarter of 2019, gross return on assets (EBITDA2 / total assets) of non-financial corporations stood at 7.8%, less 0.1 percentage points (p.p.) than in the previous quarter. Private corporations’ profitability decreased for most sectors of activity, excluding the head offices and transportation and storage sectors, which posted a 0.4 and 0.2 p.p. increase respectively, and the other services sector, the profitability of which remained unchanged from the previous quarter. Public corporations3 showed a 0.1 p.p. decrease in profitability. By size class, SME4 profitability decreased by 0.1 p.p., to 7.1%, and large enterprises’ profitability decreased by 0.2 p.p., to 9.9%.

The capital ratio (equity / total assets) stood at 38.4%, which corresponds to an increase of 0.5 p.p. from the end of 2018 (Chart 1). This increase was broadly based across all sectors of activity. The share of obtained funding in total assets declined by 0.1 p.p., standing at 33.7% at the end of the first quarter of the year.

The cost of debt (interest expenses / obtained funding) stood at 2.7%, 0.3 p.p. lower than in the same period of the previous year (Chart 2). All sectors of activity, excluding transportation and storage, showed a decrease in cost of debt compared to the same period of the previous year. In this sector, the cost of debt increased by 0.1 p.p. in the same period.

The interest rate coverage ratio (EBITDA / interest expenses) stood at 8.4, which corresponds to an increase of 1.1 from the same period of the previous year (Chart 2). Public corporations posted a 1.0 decrease in this indicator, which results in higher financial pressure. Private corporations showed lower financial pressure in all sectors of activity and size classes.

Next update: 16 Oct. 2019


Notes

1 The compilation of the quarterly indicators is based on: (i) for balance sheet variables, average values for the year ending in the quarter; (ii) for profit and loss account variables, values for the year ending in the quarter. The structure of funding is based on end-of-quarter values.

2 Earnings before interest, taxes, depreciation and amortisation.

3 Public corporations not included in the general government sector.

4 Micro, small and medium-sized enterprises.