Statistical Press Release – Statistics on corporations in the Central Balance Sheet Database – 3rd quarter of 2020
Today, Banco de Portugal publishes statistics on corporations in the Central Balance Sheet Database, for the third quarter of 2020, in Table A.19 of the Statistical Bulletin and in BPstat1. These statistics incorporate revisions since 2017, mainly from updated data, in particular the Simplified Corporate Information.
In the year ending in the third quarter of 2020, return on assets (EBITDA2 / assets) of non-financial corporations stood at 6.1%, less 0.4 percentage points (p.p.) than in the year ending in the second quarter of 2020. Nevertheless, when considering only return on assets in the third quarter of 2020, it increased when compared with the previous quarter.
Private corporations’ profitability decreased by 0.8 p.p. in transportation and storage sector, 0.6 p.p. in other services, 0.4 p.p. in electricity and in trade, 0.2 p.p. in head offices and 0.1 p.p. in construction. In the manufacturing sector, return on assets increased by 0.4 p.p. Public corporations3 showed a 2.5 p.p decrease in profitability. By size class, both large enterprises and SME4 presented a decrease on their profitability of 0.3 p.p. standing at 7.3% and 6.0%, respectively, in the year ending in the third quarter.
The capital ratio (equity / assets) stood at 39.4%, which corresponds to an increase of 0.5 p.p. from the last quarter and of 0.8 p.p from the end of 2019 (Chart 1). Compared with the previous quarter, the capital ratio increased in the manufacturing, electricity, construction, trade, other services and head offices, remaining unchanged in the transportation and storage sector. The capital ratio of public corporations decreased by 1.2 p.p. compared with the previous quarter.
The share of obtained funding in total assets decreased by 0.2 p.p., to 33.4% in the third quarter of 2020.
The cost of financial debt (financing expenses / obtained funding) stood at 3.0% in the year ending in the third quarter, unchanged from the year ending in the second quarter and less 0.1 p.p. from the same period of the previous year (Chart 2).
The financing expenses coverage ratio (EBITDA / financing expenses) stood at 6.1, which represents a decrease of 0.3 from the previous quarter and 1.2 from the same period of the previous year (Chart 2). Compared to the third quarter of 2019, all sectors of activity, excluding electricity, construction and head offices, showed a decrease in this ratio, as well as public corporations.
Next update: 16 Apr. 2021
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.