Treasury Coalition’s Global Crisis Monitor Survey Results: April 17, 2020

This week’s survey results show accounts receivables remain the biggest liquidity issue by a large margin.

 

GTreasury is committed to helping its customers and the industry at large make actionable decisions throughout the COVID-19 pandemic. With that in mind, we are active supporters of the Treasury Coalition, an industry-wide effort led by Strategic Treasurer.

 

The Treasury Coalition has launched the Global Crisis Monitor, an “immediate and ongoing survey of COVID-19 impact and response.” The survey collects weekly impact and reaction data from corporate treasury professionals around the world to provide flash insights into the current sentiment of the industry.

 

“Treasury and finance professionals continue to express major and escalating concerns about Accounts Receivable. It remains — by a large margin — the biggest debt and liquidity issue the industry is facing right now,” said Michele Marvin, vice president of marketing for GTreasury, a supporter of the Treasury Coalition. “Earlier in the COVID-19 crisis, concern about Accounts Payable seemed to be more of a result of adjusting to a remote workforce. However, it now appears to be more directly related to financial conditions and uncertainty. Delays in payments continue to pile up, with more than 10% of companies reporting extending AP timelines and, for the first time in this week-by-week survey, treasurers indicated financial normalcy won’t happen until 2021.  Despite these trends, it is good to see concerns about impacts of COVID on companies, community, and family continue to improve each week.”

Positive outlook:

  • Central bank actions still viewed positively: Respondents felt more positive toward central bank actions this week over last. By a three-to-one ratio, more organizations indicated an improved position relative to the amount of liquidity provided by central banks.
  • Impact of COVID-19 on company: A trend increases as respondents felt slight improvement of the impact of COVID-19 on their company over the previous week.
  • Level of concern for community and family: There was a slight improvement on levels of concern for community and family for the fourth week in a row.
  • Accelerated accounts payable: 4 percent of firms sped up payments to support key suppliers.

Cautionary and negative outlooks:

  • Continued concerns about liquidity: Similar to last week, organizations reported an increasingly negative outlook for accounts receivable. 21.7 percent of organizations indicated their liquidity outlook improved over the past week while 32.1 percent indicated that their liquidity view deteriorated.

Timing estimates:

  • Financial normalcy: The mean of when businesses return to the state they were in before COVID-19 slipped to nine months from now (from eight months last week).
  • Economic recovery: This week, 73 percent had a negative outlook of a recovery happening in the next three months (down from 76 percent last week).  5 percent are hopeful of a recovery in the next 12 months (compared to 43 percent last week).

Here are key graphics from this week’s report. If you cite or use any of the statistics or graphics in social media or reports, please attribute them to the Treasury Coalition: Global Crisis Monitor.

To participate in this ongoing survey click here.  We are currently collecting perspectives for the April 15  – 21  dataset. You can also sign up to receive the full report each week.