Detailed Survey Results 4Q 2016 1 Survey Background Conducted - - PowerPoint PPT Presentation
Detailed Survey Results 4Q 2016 1 Survey Background Conducted between November 9-30, 2016 Quarterly Survey CPA decision makers (primarily CFOs, CEOs and Controllers) AICPA members in Business & Industry only 600 qualified responses 2
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Detailed Survey Results — 4Q 2016
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American Institute of CPAs
Survey Background
Conducted between November 9-30, 2016 Quarterly Survey CPA decision makers (primarily CFOs, CEOs and Controllers) AICPA members in Business & Industry only 600 qualified responses
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Survey Highlights
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Overall index improved
Up from 69 last quarter, and 69 in Q4 2015 All components up quarter to quarter and year to year Organization optimism up from 68 to 74 Revenue index increases three points from 75 to 78; profits from 69 to 74 Hiring and spending plans also improve
Now optimistic about US Economy
Up from only 38% in Q3 Outlook for economy at highest level since 1Q 2015 Optimism in retail bounces back from only 33% in Q3 to 50%
Manufacturing and other sectors also show improved optimism
Have plans for expansion
Index component improves from 72 to 74 as those with plans to contract lower than Q3 Plans for companies with revenues >$100 million to < $1 billion increase from 59% to 67% Expansion plans for companies with revenues > $1 billion ease from 66% to 62%
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CPA Outlook Index
The CPA Outlook Index is the composite of the following nine indicators at equal weights:
next 12 months
next 12 months
A reading above 50 indicates a generally positive outlook with increasing activity. A reading below 50 indicates a generally negative outlook with decreasing activity. The CPA Outlook Index is a robust measure of sentiment about the U.S. economy that is supported by the unique insight and knowledge that CEOs, CFOs, Controllers, and other CPA executives have about the prospects for their own organizations, their expectations for revenues and profits, and their plans for spending and employment.
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CPA Outlook Index (CPAOI)
4Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q151Q162Q163Q164Q16 CPA Outlook Index 64 69 67 63 59 66 69 69 69 70 72 75 78 74 72 71 69 63 68 69 74 64 69 67 63 59 66 69 69 69 70 72 75 78 74 72 71 69 63 68 69 74 CPA Outlook Index – 74
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CPA Outlook Index Component Indicators
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Component 4Q15 1Q16 2Q16 3Q16 4Q16 ∆Q to Q ∆Y to Y U.S. Economic Optimism 64 47 59 58 76 18 12 Organization Optimism 70 63 68 68 74 06 04 Expansion Plans 70 63 69 72 74 02 04 Revenue 74 68 74 75 78 03 04 Profits 67 60 63 69 74 05 07 Employment 67 59 63 66 68 02 01 IT Spending 77 73 76 75 77 02 00 Other Capital Spending 72 67 70 71 73 02 01 Training & Development 68 67 67 70 71 01 03 Total CPAOI 69 63 68 69 74 05 05
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CPA Outlook Index (CPAOI) vs. GDP
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 CPA Outlook Index 71 69 63 68 69 74 Change in GDP 2.0% 1.4% 0.8% 1.4% 3.2%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 10 20 30 40 50 60 70 80 90 100 GDP Growth CPA Outlook Index
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Optimism for US economy up from
Election results cited by both
Optimists noted hopes for reduced regulation, repeal of ACA and lower income taxes Pessimists noted global unrest, healthcare costs, oil prices and anticipated interest rate increases
Organizational
53% in Q3
Optimism for respondent’s
higher than any period since 1Q 2015 The percentage of companies with expansion plans maintained the Q3 level of 62% The percentage of companies expecting their businesses to contract eased from 17% in Q3 to 14% in Q4
US Economy and Organization Highlights
Inflation concerns increase to 2014 levels
Concern about labor costs continues to be most significant but eased from 55% to 43% Raw material cost increases now concern 20% up from 18% in Q3 Energy cost and interest rate concerns both jumped –
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Optimism & Expansion U.S., Organization, Expansion
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 U.S. 19% 43% 34% 22% 21% 32% 49% 44% 38% 49% 51% 52% 64% 68% 52% 48% 45% 28% 37% 38% 62% Organization 45% 55% 54% 44% 41% 50% 57% 55% 57% 59% 61% 65% 67% 63% 58% 59% 53% 44% 53% 53% 61% Expansion 59% 61% 61% 56% 50% 58% 62% 62% 62% 63% 64% 68% 71% 64% 61% 60% 57% 52% 58% 62% 62% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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For your business, are you more concerned about inflation or deflation?
43% 37% 33% 32% 31% 36% 30% 35% 31% 29% 32% 38% 27% 23% 23% 25% 23% 14% 23% 11% 28% 11% 6% 9% 10% 9% 6% 7% 7% 7% 8% 6% 5% 10% 12% 10% 10% 11% 22% 12% 18% 4%
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Inflation or Deflation?
Inflation Deflation For your business, over the next 6 months, are you more concerned about the possibility of …?
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Food costs Energy costs Raw material costs Labor costs Interest rates Other 4Q15 2% 12% 23% 37% 22% 5% 1Q16 3% 6% 19% 44% 19% 9% 2Q16 0% 11% 20% 44% 16% 9% 3Q16 4% 5% 18% 55% 14% 4% 4Q16 1% 10% 20% 43% 23% 4%
2% 12% 23% 37% 22% 5% 3% 6% 19% 44% 19% 9% 0% 11% 20% 44% 16% 9% 4% 5% 18% 14% 4% 1% 10% 20% 43% 23% 4%
Inflationary Factor Representing the Most Significant Risk to your Business
Inflationary Risks and Costs
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Revenue and Profit projections both improve
Expected revenue increase for coming twelve months improves from 2.9% in Q3 to 3.6% in Q4 Profit projections also increase from a 2.3% expected increase in Q3 to 3.1% in Q4
Headcount plans improve; costs also tick up
Anticipated increases in headcount for the coming year increased to 1.6% in q4, up from 1.3% in Q3. Salary and benefit costs are expected to increase at a rate of 2.3%, up from 2.1% in Q3. Healthcare cost projections also jumped from 5.6% to 6.1%, the highest expected rate of increase since Q3 2014
Key Performance Indicator Highlights
R&D spending and “other capital” lead the improvements
Spending for IT continues to ‘lead the league’, projected at 2.9% in Q4 Training remains constant at 1.6% quarter to quarter Other capital spending anticipated increase improves from 2.4% in Q3 to 2.7% in Q4 R&D spending jumps from 1.1% in Q3 to 1.5% in Q4, the highest expected rate increase since Q3 2015
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Key Performance Indicators Expected Growth in Revenue and Profits
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Revenue 2.8% 3.5% 3.1% 2.6% 2.1% 3.0% 3.1% 3.3% 3.6% 3.6% 3.8% 4.4% 4.7% 3.6% 3.2% 3.3% 2.9% 1.7% 3.0% 2.9% 3.6% Profit 2.4% 2.9% 2.6% 2.2% 1.4% 2.1% 2.4% 2.5% 2.7% 2.9% 2.9% 3.6% 3.9% 2.8% 2.4% 2.6% 2.0% 0.7% 1.5% 2.3% 3.1%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Thinking about the coming 12 months, please comment on the probable change for your
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Employees, Salary & Benefits and Healthcare Costs
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Employees 1.2% 1.5% 1.1% 0.8% 0.5% 1.1% 1.0% 1.3% 1.2% 1.5% 1.3% 1.8% 2.1% 1.6% 1.5% 1.3% 1.0% 0.5% 1.1% 1.3% 1.6% Salary & Benefits 2.1% 2.0% 2.0% 1.9% 1.9% 2.2% 2.2% 2.3% 2.2% 2.2% 2.1% 2.4% 2.5% 2.0% 2.1% 2.0% 1.8% 1.4% 1.8% 2.1% 2.3% Healthcare 6.0% 6.2% 6.3% 6.4% 6.4% 6.3% 6.7% 6.8% 6.6% 6.2% 5.7% 6.6% 5.9% 5.8% 5.8% 5.8% 5.4% 5.4% 5.7% 5.6% 6.1%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Thinking about the coming 12 months, please comment on the probable change for your
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Pricing & Other Costs Average Change Expected
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Prices Charged 1.2% 1.4% 1.2% 1.2% 1.1% 1.3% 1.1% 1.3% 1.3% 1.3% 1.8% 1.7% 1.7% 1.4% 1.4% 1.6% 1.5% 0.8% 1.3% 1.5% 1.8% Input Prices 2.1% 2.1% 1.9% 1.9% 1.9% 2.0% 1.8% 1.9% 1.8% 1.8% 2.4% 2.3% 2.1% 2.1% 2.0% 2.2% 2.1% 1.5% 2.1% 1.9% 2.4%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Thinking about the coming 12 months, please comment on the probable change for your
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Spending Plans IT, Other Capital & Training
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 IT 2.7% 2.8% 2.8% 2.4% 2.1% 2.7% 2.8% 2.7% 2.9% 3.2% 3.1% 3.3% 3.3% 3.1% 3.1% 3.0% 2.8% 2.3% 2.6% 2.8% 2.9% Other Capital 2.2% 2.1% 2.0% 1.7% 1.3% 1.9% 2.2% 2.2% 2.1% 2.3% 2.4% 2.9% 3.2% 2.4% 2.4% 2.5% 2.4% 1.5% 2.1% 2.4% 2.7% Training 1.2% 1.4% 1.2% 1.0% 0.7% 1.3% 1.3% 1.3% 1.5% 1.7% 1.8% 2.0% 2.2% 1.6% 1.8% 1.4% 1.4% 1.1% 1.3% 1.6% 1.6%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Thinking about the coming 12 months, please comment on the probable change for your organization for …
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Spending Plans Marketing & R&D
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Marketing 1.8% 1.8% 1.5% 1.1% 1.0% 1.5% 1.4% 1.5% 1.5% 1.7% 1.6% 1.6% 1.8% 1.6% 1.8% 1.6% 1.6% 1.4% 1.4% 1.4% 1.5% R&D 0.9% 1.2% 1.0% 0.6% 0.6% 0.9% 1.0% 1.0% 1.0% 1.0% 1.0% 1.2% 1.3% 1.3% 1.2% 1.7% 1.2% 0.9% 1.1% 1.1% 1.5%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Thinking about the coming 12 months, please comment on the probable change for your
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Hiring Plans
Hiring plans continue to improve
55% of all companies say they have the appropriate number of employees Returning to levels seen in Q4 2015 and Q1 2016 Excess number of employees eased four points to only 9% down from 13% in Q3
More than 1/3 have too few employees
The percentage with too few employees who are reluctant to hire declined to 15% Down two points from Q3 and three points from 18% in Q2 2016 Those with too few employees that are planning to hire eased a point from 21% in Q3 to 20% in Q4
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Overall staff situation relative to your needs
We have an excess number of employees We have approximately the appropriate number
We have too few employees, but are hesitating to hire We have too few employees and are planning to hire Other 4Q15 10% 53% 17% 18% 2% 1Q16 13% 53% 16% 15% 3% 2Q16 12% 49% 18% 19% 2% 3Q16 13% 48% 17% 21% 1% 4Q16 9% 55% 15% 20% 1%
10% 53% 17% 18% 2% 13% 53% 16% 15% 3% 12% 49% 18% 19% 2% 13% 48% 17% 21% 1% 9% 55% 15% 20% 1%
Given current conditions, how would you characterize your overall staffing situation relative to your needs (i.e., do you have excess capacity or are employees stretched)?
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Top Challenges Facing Organizations
Regulatory requirements maintained their place at the top of the challenges list Employee and benefit costs jumped three spots to the second place in the ranking of challenges Domestic economic challenges, availability of skilled personnel and domestic competition each fell one slot this quarter Developing new products and services jumped from ninth place to sixth place, switching places with concern about stagnant/declining markets which fell from sixth to ninth Domestic political leadership maintained the seventh spot Changing customer preferences returned to the top ten, claiming eighth place, the same as the Q4 2015 ranking Staff turnover similarly returned to the top ten for the first time since it claimed the number ten slot in Q4 2014
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Top Challenges for Organizations
Please indicate the top three challenges for your organization
4Q 15 1Q16 2Q16 3Q16 4Q16
1 Regulatory requirements/changes Domestic economic conditions Regulatory requirements/changes Regulatory requirements/changes Regulatory requirements/changes 2 Domestic economic conditions Regulatory requirements/changes Domestic economic conditions Domestic economic conditions Employee and benefits costs 3 Domestic competition Stagnant/declining markets Availability of skilled personnel Availability of skilled personnel Domestic economic conditions 4 Availability of skilled personnel Domestic competition Domestic competition Domestic competition Availability of skilled personnel 5 Stagnant/declining markets Availability of skilled personnel Employee and benefits costs Employee and benefits costs Domestic competition 6 Employee and benefits costs Employee and benefits costs Stagnant/declining markets Stagnant/declining markets Developing new products/services/markets 7 Global economic conditions Domestic political leadership Domestic political leadership Domestic political leadership Domestic political leadership 8 Changing customer preferences Financing (access/cost of capital) Developing new products/services/markets Liquidity Changing customer preferences 9 Domestic political leadership Developing new products/services/markets Liquidity Developing new products/services/markets Stagnant/declining markets 10 Global economic conditions Domestic political leadership Energy costs Financing (access/cost of capital) Staff Turnover
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Industry, Region and Business-size Outlook - 1 of 3
Optimism Improves for Retail, Wholesale Trade and Manufacturing Construction, Real Estate and Finance & Insurance also see improved
Retail trade optimism improved from 33% in Q3 to 50% in Q4 Wholesale trade optimism also improved slightly from 45% to 48% Hiring for retail continues to be soft and eased further from a projected rate of 1.1% in Q3 to
Manufacturing optimism also improved from 47% to 55% Manufacturing hiring improved from 1.4% to 1.7% Construction optimism improved from 69% in Q3 to 75% in Q4 Real Estate and Property improved from 62% to 69% Finance & Insurance from 57% to 66%
Construction hiring improved from 1.0% to 2.0 % Real Estate hiring improved from 1.5% to 1.7% Finance and Insurance maintained its 1.8% rate Banking sector hiring is also expected to improve considerably, up from 0.6% in Q3 to 2.3% in Q4
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Industry, Region and Business-size Outlook - 2 of 3
Technology and Professional Service see declines in Optimism Healthcare providers constant; Healthcare –
significantly
Technology optimism eases slightly from 71% in Q3 to 67% in Q4 Technology hiring also falls off from 4.86% in Q3 to 2.0% in Q4 Professional service optimism falls
Professional service hiring continues to be strong; eases slightly from 3.2% in Q3 to 2.5% in Q4 Healthcare providers maintained their relative optimism, improved a point to 69% in Q4, up from 68% in Q3 Healthcare – other jumped significantly from only 50%
in Q4 Healthcare providers also top the list in terms of plans for increased hiring in the coming year at a 2.8% rate
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Industry, Region and Business-size Outlook - 3 of 3
South and Midwest regions see improvement in optimism Smallest and largest employers most hesitant to hire
South – optimism in South bounces back from 48% in Q3 to 68% in Q4 Midwest – also recovers, improving from 53% to 62% optimistic in Q4 West – improves slightly from 57% to 59% Northeast – gives up two points, falling from 58% to 56% Employers with > $1 billion in revenues is the segment with the highest percentage of respondents (13%) with excess employees; they are also the segment with too few employees (34%). However, 22% of the largest companies with too few employees are hesitant to hire. Employers with revenues < $10 million are also mixed; only 6% have excess employees; while 30% have too few employees, only 11% are planning to hire; 19% are hesitant. Plans to hire are highest in the category of employers with revenues in the $100 million to $1 billion category at 27%
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Organization Optimism by Industry
66% 69% 85% 65% 28% 39% 50% 33% 50% 0% 20% 40% 60% 80% 100%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Retail Trade
66% 54% 65% 54% 23% 42% 50% 45% 48% 0% 20% 40% 60% 80% 100%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Wholesale Trade
71% 63% 55% 53% 41% 48% 48% 47% 55% 0% 20% 40% 60% 80% 100%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Manufacturing
50% 80% 60% 67% 52% 53% 61% 71% 67% 0% 20% 40% 60% 80% 100%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Technology
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Organization Optimism by Industry
68% 72% 64% 68% 60% 46% 70% 67% 48% 0% 20% 40% 60% 80% 100%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Professional Service
71% 66% 74% 65% 49% 41% 58% 57% 66% 0% 20% 40% 60% 80% 100%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Finance & Insurance
64% 68% 65% 69% 48% 52% 62% 62% 69% 0% 20% 40% 60% 80% 100%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Real Estate
78% 83% 64% 64% 51% 59% 59% 69% 75% 0% 20% 40% 60% 80% 100%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Construction
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Organization Optimism by Industry
75% 56% 50% 67% 44% 67% 63% 50% 80% 0% 20% 40% 60% 80% 100%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Health Care Other
65% 49% 47% 69% 38% 52% 69% 68% 69% 0% 20% 40% 60% 80% 100%
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Health Care Provider
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Expected Employment Change by Industry
Thinking about the coming 12 months, please comment on the probable change for your
1.1 1.7 0.6 1.4 1.8 1.7 1.2 1.0 4.9 0.6 3.2 2.9 0.8 1.5 1.6 1.7 1.8 1.8 1.9 2.0 2.3 2.5 2.8
0.0 1.0 2.0 3.0 4.0 5.0 6.0
Retail Trade Real Estate Property Not for Profit Manufacturing Finance and Insurance Mining Trans & Distribution Construction Technology Banking Professional Services Healthcare Provider
Q4 Q3
2.0
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Organization Optimism by Region
4Q15 1Q16 2Q16 3Q16 4Q16 South 48% 38% 53% 48% 68% Midwest 55% 45% 53% 53% 62% West 55% 55% 54% 57% 59% Northeast 58% 48% 62% 58% 56%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Please select the rating that best describes your view for the economic outlook for your own
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Expansion Plans by Business Size
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 < $10 million 54% 55% 58% 50% 44% 52% 53% 56% 56% 56% 59% 59% 65% 59% 47% 61% 52% 44% 55% 53% 52% $10 to <$100 million 56% 60% 59% 58% 52% 58% 63% 61% 63% 62% 65% 69% 72% 63% 66% 62% 57% 59% 61% 65% 63% $100 million to <$1 billion 62% 66% 66% 56% 53% 63% 63% 64% 62% 71% 65% 73% 72% 67% 65% 60% 57% 50% 61% 59% 67% > $1 billion 69% 65% 62% 54% 53% 68% 68% 68% 64% 69% 66% 71% 75% 77% 53% 56% 59% 49% 50% 66% 62%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 52% of all businesses expect to expand a little in the next twelve months 10% expect to expand a lot. 36% expect to contract a little or stay the same Only 1% expect to contract a lot vs 4% in Q3 Please indicate whether you expect your business to expand or contract over the next 12 months
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Businesses in the >$1 billion range are most likely to have excess employees
We have an excess number
We have approximately the appropriate number of employees We have too few employees, but are hesitating to hire We have too few employees and are planning to hire Other < $10 million 6% 63% 19% 11% 1% $10 to <$100 million 9% 58% 12% 21% 0% $100 million to <$1 billion 10% 47% 14% 27% 2% > $1 billion 13% 52% 22% 12% 1% 6% 63% 19% 11% 1% 9% 58% 12% 21% 0% 10% 47% 14% 27% 2% 13% 52% 22% 12% 1%
Given current conditions, how would you characterize your overall staffing situation relative to your needs (i.e., do you have excess capacity or are employees stretched)?
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Presidential Election – A Factor in Business Planning?
Now that you know the outcome of the 2016 presidential election, how much will the
company’s business planning, budgeting or forecasting for the next fiscal year?
25% 30% 30% 15% 0% 5% 10% 15% 20% 25% 30% 35%
NOT A FACTOR SLIGHT OR SOMEWHAT A FACTOR MODERATE FACTOR SIGNIFICANT FACTOR
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Presidential Election – Most likely impact on hiring
What are your company’s most likely actions concerning job creation and hiring, now that the presidential election has been decided?
2% 9% 9% 36% 44% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% REDUCE NEW HIRING INCREASE HIRING DEFER NEW HIRING (ONLY REPLACE ESSENTIAL PERSONNEL) CONTINUE TO HIRE AT CURRENT PACE ELECTION IS NOT A FACTOR IN HIRING
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If you were to hire more people, what type of position would you hire most of:
4% 6% 8% 11% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80%
TEMPORARY EMPLOYEES CONTRACT EMPLOYEES I DON'T KNOW PART-TIME EMPLOYEES FULL-TIME EMPLOYEES
Presidential Election – Type of position most likely if hiring
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Presidential Election – Capital spending and business expansion plans
With the presidential election over, what are your company’s most likely actions concerning capital expenditures and business expansion, including borrowing and financing?
3% 6% 13% 38% 40% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
REDUCE CAPITAL EXPENDITURES AND BUSINESS EXPANSION SPENDING DEFER CAPITAL EXPENDITURES AND BUSINESS EXPANSION SPENDING INCREASE CAPITAL EXPENDITURES AND BUSINESS EXPANSION SPENDING ELECTION OUTCOME IS NOT A FACTOR IN CAPITAL EXPENDITURES AND BUSINESS EXPANSION SPENDING CONTINUE TO SPEND ON CAPITAL EXPENDITURES AND BUSINESS EXPANSION AT CURRENT PACE
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Liquidity - Current Position
How would characterize your organization’s current liquidity position?
8% 11% 14% 18% 49% 0% 10% 20% 30% 40% 50% 60%
LESS THAN WE NEED, BUT CREDIT/CAPITAL AVAILABILITY AND/OR PRICING IS A BARRIER LESS THAN WE NEED, AND PLAN TO RAISE CAPITAL MORE THAN WE NEED AND PLAN TO DEPLOY MORE THAN WE NEED, BUT RELUCTANT TO DEPLOY ABOUT RIGHT
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Liquidity - Expectations for financing difficulty
Do you expect it to be more or less difficult to
year?
11% 13% 18% 58% 0% 10% 20% 30% 40% 50% 60% 70% LESS DIFFICULT MORE DIFFICULT NA ABOUT THE SAME
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Liquidity – Plans for level
Are you planning on reducing your corporate cash holdings in the next 12 months? If so, to what degree?
2% 11% 14% 14% 59% 0% 10% 20% 30% 40% 50% 60% 70% YES, SIGNIFICANTLY YES, MODERATELY YES, A BIT NO, PLANNING TO ADD TO LIQUIDITY HOLDINGS NO, MAINTAINING LIQUIDITY HOLDINGS
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Liquidity – Plans for companies reducing their cash holdings?
If you indicated that you plan to reduce cash holdings, what are your plans for the cash?
(Check all that apply – percentages add to more than 100% due to multiple plans)
30% 6% 7% 18% 19% 20% 20% 36% 0% 5% 10% 15% 20% 25% 30% 35% 40% OTHER/NOT SURE SHIFTING TO LONGER-TERM INVESTMENT MIX STOCK BUYBACK ACQUISITION OF OTHER BUSINESS TRANSACTION DIVIDEND OF OTHER EQUITY DISTRIBUTION REDUCING DEBT BUSINESS EXPANSION/HIRING CAPITAL PROJECTS
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Liquidity – Placement
response to money market regulations
Have you taken any steps to shift your cash allocation from money market funds in response to new regulations that limit this practice? If so, where are you putting the funds?
1% 1% 3% 4% 11% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% SHORT-TERM BOND FUNDING EXCHANGE-TRADED FUNDS OTHER (PLEASE SPECIFY) GOVERNMENT FUNDS NOT SURE NO, WE HAVEN'T SHIFTED ALLOCATION
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Demographics
20% 34% 11% 12% 6% 4% 13% Size of Organization
$0 to under $10 million $10 million to under $50 million $50 million to under $100 million $100 million to under $250 million $250 million to under $500 million $500 million to under $1 billion $1 billion or more
17% 69% 1% 12% 1% Type of Organization
Publicly Listed Company Privately Owned Entity Government Not for Profit Other
12% 2% 7% 43% 1% 20% 5% 5% 4% Position
CEO/President COO VP CFO CAO/CAE CIO Controller Director Accounting, Audit, Tax or Technology Manager Other
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For additional information contact:
Kenneth W. Witt, CPA, CGMA Lead Technical Manager Management Accounting kwitt@aicpa.org Cary Jones Associate Manager Business, Industry & Government Team cajones@aicpa.org
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