Analysis
The increase in sales would be the easy part
Deloitte Survey on the intercompany indebtedness in a situation of crisis
In a situation of growing demand, companies will need additional working capital, as well as investment capital for adjustment of production capacity and update in product portfolio. Analysis is based on a study by Deloitte Bulgaria on intercompany indebtedness dynamics.
Companies from various industries face difficulties in the current unprecedented times. Management needs to act now in order to ensure the success of future operations. The significantly reduced volume of transactions and delayed deliveries bring us back to the topic of the extent and duration of intercompany indebtedness. A survey of Deloitte among chief executive and chief financial officers of companies operating in Bulgaria shows that for almost three quarters of the participants, receivables from customers remain within the historical average values or decrease. The main reason for this are the declining sales - a dynamics strongly expressed in
April, which limits the rate of emergence of new receivables.
Find out more by reading the whole article written by:
Angel Trifonov, Manager Financial Advisory Services, Deloitte Bulgaria
Kaloyan Yordanov, Lawyer and Manager, Deloitte Legal