CFO survey on COVID-19

COVID-19 is the dominant corporate risk in the Deloitte CFO survey. After all, companies have become more resilient to a franc appreciation on average since 2018.

Editorial office - 06 April 2020

COVID-19 is the dominant corporate risk in the Deloitte CFO survey. (Image: Unsplash)

As a result of the COVID 19 crisis, almost all Swiss CFOs (English, abbreviated: Chief Finance Officer) expect a sharp economic downturn with recession - both in Switzerland and in the US, UK and eurozone. Swiss companies are countering the crisis mainly by cutting costs and generating new sales.

They are better prepared for the crisis than companies in other countries.

A rapid recovery seems possible for Switzerland as soon as the Federal Council's far-reaching measures are lifted: The healthy state budget and the companies, which are constantly forced by the strong currency to optimise, have been caught in a position of strength by the Corona crisis.

In view of the global economic slump, the CFO survey records lows for almost all company key figures. The most important facts from the CFO survey in Switzerland:

Economic expectations:

CFOs' economic expectations are collapsing. Only 11% expect an improvement within 12 months, 64% a deterioration. Recession expectations for the next 2 years are skyrocketing, for Switzerland as well as for the US, the eurozone and the UK.

Company Outlook:

The last few months have been challenging, and the coming months will be as well. Lows are being seen for all corporate metrics. CFOs are slightly less pessimistic about the next 12 months than they were in the last 3 months. Looking ahead, 29% expect the corporate outlook to improve, while 43% expect it to worsen.

Corporate risks:

COVID-19 dominates the corporate risks. It is by far the most frequently cited risk. Other risks such as a weakness in demand or problems with supply chains are also likely to be influenced by the coronavirus.

Measures in the crisis:

CFOs are actively addressing the crisis. In 91% of the companies, measures are underway to contain the effects of the recession, with cost savings and revenue generation being mentioned most frequently.

Currency concerns:

Swiss companies have become more resilient to a franc appreciation since 2018 - a very welcome development as the franc has appreciated since then. On average, companies can live with an exchange rate as low as EUR/CHF 1.03; two years ago, the pain threshold was EUR/CHF 1.05. But the current rate is already at or above their own pain threshold for 17% of the companies.

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CFO survey on COVID-19

COVID-19 is the dominant corporate risk in the Deloitte CFO survey. After all, companies have become more resilient to a franc appreciation on average since 2018.

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