CFO Sentiment | Edition 5 has been saved
CFO Sentiment | Edition 5
Solid on outlook, positive on risk
CFO Sentiment continued to improve in the first half of 2018 - 77% of CFOs are optimistic about their prospects and only 4% are pessimistic. This is reflected in strong local job growth and investment activity as businesses feel confident enough to increase their capacity.
Key findings from this edition include:
- Strong global economic conditions are flowing through to Australian economy, and this is elevating CFO optimism
- Just over 75% of CFOs are optimistic about the financial prospects of their company
- Risk appetite remains strong, with a record 64% of CFOs comfortable with taking on more balance sheet risk (up two points on the previous results of 62% in the last half year)
- 42% of CFOs are interested in taking on risk in the form of additional investment if tax cuts are legislated, while only 11% are looking to pay down debt
- CFOs remain wary of potential risks that threaten the business outlook including trade tariffs and interest rate hikes as well as continued business disruption
- Digital transformation is front of mind, both disruptive and transformative, with more than 20% of CFOs focusing on updating core systems and existing capabilities.
CFO Sentiment | Edition 5
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CFO Sentiment - Edition 4
CFO optimism continues to hold strong, bolstered by upbeat economic outlooks – at home and in Europe and the United States. Paired with reduced financial volatility, Australia’s top finance executives have increased their appetite for risk. Despite this positive outlook however, CFOs are concerned about the impact of new regulatory changes as well as what emerging technologies like artificial intelligence might have on their bottom line.
CFO Sentiment - Edition 3
Confidence amongst CFOs continues to improve alongside the positive fortunes of the global economy. That doesn’t mean that uncertainty doesn’t continue to prevail, but Australia’s most senior finance executives remain comfortable in the face of the challenges it presents. Risk appetite is up, innovation and technology – from blockchain to automation – remain keys to productivity improvements, and workforce wellness has emerged as an important focus.
CFO Sentiment - Edition 2
2016 was arguably the year where uncertainty became the norm rather than the exception – think the outcome of the July Federal election, Great Britain’s decision to leave the European Union and Donald Trump’s ascendancy to the most influential role in world politics.
Australian CFOs provide views on how our current economic climate is effecting business investment and where Government need to ideally focus their efforts post-election to support business development and growth.
Published: August 2018