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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.

FSA Working Group

"The FSA WG has produced the News release Customer and supplier payments periods and financial distress; This note presents the results gathered by six of the FSA-WG participating countries that could collect data related to the failure of corporations: Belgium, France, Italy, Portugal, Spain and Turkey, in an ad hoc analysis by using individual data, testing the differences between failing and non-failing corporations days sales outstanding (DSO) and days payables outstanding (DPO), which had the purpose of answering the question if the customer and supplier payment periods were related with corporations’ financial distress.”

Link to the FSA WG publication section

FSA Working Group

"The FSA WG has updated its user friendly excel tool that helps to explore and navigate through its trade credit data base of non-financial corporations. The database contains indicators of days sales outstanding (DSO) and days payable outstanding (DPO), used as proxies for customer and supplier payment periods.”

Link to the FSA WG publication section

FSA Working Group

"The FSA WG has produced this News release that presents the most recent trends in the collection and payment periods on trade credits of European non-financial corporations (Belgium, Germany, Spain, France, Croatia, Italy, Poland, Portugal and Turkey). This note contains an update of the previous report and covers the period 2007-2016.”

Link to the FSA WG publication section

ERICA Working Group

The ERICA WG has published a new “ERICA series” document, under the title: “The value relevance of consolidated financial information”. The value relevance measures the extent to which financial information can explain investors’ decisions, which are reflected in the groups’ market value. The study examines the value relevance of IFRS financial information for each year from 2012 until 2016, per country, throughout sectors and also within group size categories. The approach applied follows the idea that the joint explanatory power of book value and net income gauges the extent to which financial information is relevant to investors.

ERICA Working Group

ERICA WG has published its document: "ERICA Statistics 2016"

This document provides statistical information based on the data available in the ERICA database. These statistics have been compiled, using the ERICA 2016 database, covering more than 1000 European listed groups over the 2005-2016 period. For a selection of nearly 50 variables, averages, total aggregates, quartiles, minimum and maximum values are published, by year, by sector of activity, by country and/or by size class.

ERICA Working Group

ERICA WG has published its document: "European non-financial listed groups: Analysis of 2016 data" together with its annex "European non-financial listed groups: Analysis of 2016 data - Annexes"

The study presents some highlights of European non-financial listed groups, on profitability and financial structure in 2016, as well as on 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.