Self-financing Capacity and Capitalisation of Austrian Manufacturing in an International Comparison
Due to the slowdown in the first half of 1999 as a result of the financial crises in Asia, Latin America and Russia, WIFO expects a temporary decline of the cash flow/sales ratio to 9.1 percent in 1999 for Austrian manufacturing, as compared to 9.7 percent in 1988. The survey performed by the Federation of Austrian Industrialists among 200 mainly larger manufacturing firms confirms the temporary decline, but finds it to be marginal only. The decrease in costs, especially labour unit costs but also the falling cost of external finance, prevented any larger drop in profitability. Since the second half of 1999 Austrian manufacturing firms have been back on their expansive course. According to the WIFO business surveys, firms now have more optimistic assessments of their order stocks and expectations of the future business climate. The January 2000 Survey found a subjective feeling that their competitive standing on markets in the EU and outside Europe has substantially improved over the previous year. With international comparative data available only until 1997, Austrian manufacturing has strengthened its position among European countries with regard to both its cash flow ratio and its equity ratio. In terms of its cash flow ratio Austria has approached the top ranks, whereas regarding the equity ratio Austrian manufacturing is still catching up from a position far behind relative to the European average. European front runners in terms of cash flow ratio in 1997 are the Netherlands (15.1 percent) and Denmark (12.4 percent). Austria and Belgium share the same ratio of 10.0 percent. Austrian manufacturing thus outperforms countries such as Italy, Germany and France, where the cash flow ratios appear to be only slightly above 8 percent. In a global comparison within the triad, the cash flow ratio in 1997 was highest in the USA (12 percent), followed by an average of seven comparable European countries (10 percent), and Japan (below 8 percent) ranking last.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 73 (2000)
Issue (Month): 3 (March)
|Contact details of provider:|| Postal: Arsenal Object 20, A-1030 Wien|
Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/
More information through EDIRC
|Order Information:|| Postal: Austrian Institute of Economic Research Publikationsverkauf und Abonnentenbetreuung Arsenal, Objekt 20 A-1030 Vienna/Austria|
When requesting a correction, please mention this item's handle: RePEc:wfo:monber:y:2000:i:3:p:181-189. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilse Schulz)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.