Deloitte released their quarterly CFO survey recently. For the survey the Deloitte CFO Signals Team interview 155 CFO's, 87% of whom work for a company with an annual revenue of over $1bln, and 74% are from a public co. 85% of the respondents works for a US based firm, the others for Canadian or Mexican firms.
Below we review the most important findings, with the help from excellent charts by Deloitte. They saved the best for last, with CFO's still showing high optimism on capex, revenue, and earnings;
Firstly, economic optimism; How do the CFO's regard the North American, European, and Chinese Economy? The respondents are increasingly positive about the current state of the American and European economies, and even expect the economy to improve in a year. The expectations are more lackluster about the Chinese economy.
Next they were questioned on the equity markets, financing, and their risk appetite:
Deloitte then asks the CFO's about the optimism for their own companies' prospects. It is interesting to see that, even though 75% of the respondents thinks the equity market is overvalued (above), 60% still think their own company has further to run:
Industry wise, Manufacturers, Tech, and Services companies are most optimistic about their outlook for growth (above).
Deloitte then wants to know what the businesses will be focusing on next year. The CFO's reply they are still on the offensive, trying to grow revenue, and invest in their companies, but will emphasize current geographies and markets, i.e. expect to grow organically.
They then ask the CFO for their view on how the following metrics will evolve over the coming year. What really stands out here is Capex, which is at a 5 year high, and revenue expectations which are at a 2 year high, and earnings which rose to a 3 year high.
Finally, Deloitte asks they CFO's how they intend to use the cash they have repatriated.
Please find more info on this survey on the Deloitte website.