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ERICA Working Group

ERICA WG has published its document: "European non-financial listed groups: Analysis of 2018 data"

The study presents some highlights of European non-financial listed groups, on profitability and financial structure in 2018, as well as financial debt structure and cost of debt. ERICA (European Records of IFRS Consolidated Accounts), is a database, for internal use within the members of ECCBSO, composed of a dataset of around 1,000 European non-financial groups, fully representative of the stock markets of the countries participating in the project (Austria, Belgium, France, Italy, Germany, Greece, Portugal, Spain and Turkey). The data are obtained from publicly available financial statements, having been treated manually, by CBSO statistics and accounting specialists, to be fitted on a standard European format (ERICA format). This manual treatment means, in some cases, the interpretation of the original data, a constraint that readers of this document should bear in mind.

ERICA Working Group

The ERICA WG has published a new “ERICA series” document: “Employment and relative labour costs”. This document examines the distribution of group-level labour costs in different countries, based on consolidated data from non-financial listed groups, gathered in the ERICA database for the accounting period 2017. A cross-country comparison for the globalized labour costs per full-time equivalent (FTE) was made by decomposing the differences between countries into intrinsic and structural components, in order to understand whether the difference between country ratios is mainly due to differences in the real labour cost per FTE or to differences in the structure of the countries’ group population.

ERICA Working Group

ERICA WG has published its document: "European non-financial listed groups: Analysis of 2017 data" together with its annex "European non-financial listed groups: Analysis of 2017 data - Annexes"

The study presents some highlights of European non-financial listed groups, on profitability and financial structure in 2017, as well as financial debt structure and cost of debt. ERICA (European Records of IFRS Consolidated Accounts), is a database, for internal use within the members of ECCBSO, composed of a dataset of around 1,000 European non-financial groups, fully representative of the stock markets of the countries participating in the project (Austria, Belgium, France, Italy, Germany, Greece, Portugal and Spain). The data are obtained from publicly available financial statements, having been treated manually, by CBSO statistics and accounting specialists, to be fitted on a standard European format (ERICA format); this manual treatment means, in some cases, the interpretation of the original data, a constraint that readers of this document should bear in mind

BACH Working Group

“Outlook #6 “High profitability activities a review on the concepts of profitability”

The Outlook #6 available free of charge at the BACH website, entitled "High profitability activities a review on the concepts of profitability”, uses BACH data from 11 European countries (Austria, Belgium, Czech Republic, Germany, Spain, France, Italy, Luxembourg, Poland, Portugal and Slovakia) to analyse European non-financial activities’ profitability. This outlook focuses on identifying the activities with high return on equity and knowing their distribution by country and sector. Furthermore, other concepts of profitability are analysed, such as return on assets and the net operating margin. The comparison of the high profitability activities according to each one of the profitability ratios highlights the factors that favour profitability across countries and economic sectors."

FSA Working Group

"The FSA WG has produced the News release Profitability, Equity Capitalization and Net Worth at Risk (Updated with 2015 data).

Financial Statement Analysis Working Group (WG FSA) conducted a study in 2013 to analyze profitability and equity capitalization in six European countries for manufacturing, construction and trade sector focusing on the economic crisis in the years 2008-2009 and one year later. The group introduced the concept of “Net Worth at Risk” (NWaR) as a kind of stress test evaluate if companies in sector, size and country classification are enough capitalize to afford a period of crisis with possibility of having heavy losses. NWaR is the share of cumulative losses (as a percentage of total assets) that companies may have to face with a certain level of confidence calculated over a given period of time. Two NWaR approaches are used: conditional and unconditional NWaR at three confidence level: 95%, 90% and 80%. The first two represent rather worst-case scenarios and the last displays a rather moderate loss scenario.
 

This note is the extension of the former study within the time span from 1987 to 2015 with Spanish, Italian and Turkish data. Likewise the former one, this study aims to create a tool for the stress test to evaluate the financial performance of the companies in terms of profitability and equity capitalization.”

Link to the FSA WG publication section

ERICA Working Group

The ERICA WG has published a new “ERICA series” document, under the title: “Group sizes and geographical activity”. Based on additional information that was collected for approximately 300 non-financial listed groups, this document provides an overview of the size of these groups in terms of the number of subsidiaries and the location of their activities, taking account of their sector classification and country of incorporation of the parent entity. To conclude, we tested whether groups that are active on a more global level, are more profitable.