The most recent Deloitte CFO Survey finds that concerns about the global economy remain at the forefront of many CFOs’ minds, with more than a third identifying global economic uncertainty as their key concern for the coming year and 79% saying the level of uncertainty was above normal.

 

The latest survey indicated that CFOs are taking a conservative approach to managing their balance sheets. Almost three-quarters (73%) said that now is not the right time to be taking more risk onto their books, representing the highest number since the survey began in 2009.

  • CFOs expect a difficult year ahead with decreases in revenues, operating margins, discretionary spending and hiring, while operating and financing costs are expected to increase  
  • Optimism continues to flatline. While 26% of CFOs are more optimistic about their financial prospects than three months ago, 32% are now less optimistic
  • Expanding organically, increasing cash flow and reducing costs are the most popular business strategies for CFOs in the coming year
  • Risk appetite dropped to its lowest levels from 45% to 27%,  while risk aversion climbed from 55% to 73% over the previous quarter
  • Funding availability was the second greatest concern
  • The cost of credit remained high but availability has dropped sharply, with over one-third of respondents saying credit was difficult to obtain.

 

The Deloitte CFO Survey targets the CFOs of major Australian listed companies. It has been conducted on a quarterly basis since the third quarter of 2009. This survey covers the fourth quarter of 2011 and took place between 8 December 2011 and 13 January 201. 73 CFOs participated, representing businesses with a combined market value of approximately $332 billion or 24% of the Australian quoted equity market.

 

The full report can be downloaded here.