Figures released by the Bank of Portugal (BdP) today show that the percentage of companies “in a potential risk situation” increased in all regions in 2020, with 44.5% of companies reporting negative net results, against 36.9% in 2019, with the Algarve and the Autonomous Region of Madeira recording negative net profits of 52.2% and 52.5% respectively.
Central bank data also points out that the return on corporate assets fell from 7.6% to 5.9% between 2019 and 2020, in a decrease “transversal to all regions”, but “more expressive” in the Algarve and Madeira, whose business fabric depends more on accommodation and catering.
The weight of equity in the assets of companies in these regions stood at 34.0% in the Algarve, 35.7% in the Autonomous Region of the Azores and 43.1% in the Autonomous Region of Madeira, with companies in the Autonomous Region of Madeira, despite the observed decrease, continuing to present the highest value for this indicator.
These new regional economic and financial indicators for non-financial corporations, now published by Banco de Portugal, are presented by sector of activity, region and focus on profitability, funding, liquidity and company risk.
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