Over 64% of CFOs Expect Operating Margins To Improve In Q3 2024: Report

As the overall optimism level for the macro-economic scenario has improved, around 64 per cent of the Chief Financial Officers (CFOs) expect the operating margins of companies to improve in the third quarter of 2024, according to the quarterly survey results by Dun and Bradstreet. The composite CFO optimism index has improved by 8 per cent on a quarter-on-quarter basis in Q3 2024 to reach a 123.3 index level. The optimism for the financial performance has witnessed an uptick of 2.4 per cent.

In the third quarter (From July to September) of 2024, the optimism level for the macro-economic scenario has improved by 14.5 per cent QoQ. Around 59 per cent of the CFOs believe that the availability of funds in the market is set to improve in Q3 2024. However, the optimism of CFOs regarding the liquidity position of the company is set to decline by 4 percentage points in the quarter.

Around 36 per cent of the CFOs expect that the risk appetite of the firms in the industrial sector is set to improve in the quarter, marking a 6 per cent improvement as compared to the last quarter (April to June). On the other hand, around 51 per cent of such officers expect the need to raise long-term funds in the quarter. The need for raising short-term funds among the CFOs stands at 57 per cent.

As per the D&B CFO Optimism Index for Q3 2024, one in every fourth CFO expects that the level of financial risks to the balance sheet will reduce in the quarter and the cost of raising funds in the market is also set to reduce within the industrial sector.

As far as the global macroeconomic scenario is concerned, it has improved by 8 per cent in the industrial sector in Q3 2024 on a quarterly basis. Around 60 per cent of the CFOs expect the overall scenario of mergers and acquisitions within the sector to witness an improvement in the quarter.

Around 43 per cent of the CFOs are looking forward to an improvement in the global macroeconomic scenario in the quarter, as per the survey. The optimism for the need to raise short-term funds among the CFOs stands all-time high.