Series: Analytical Articles.
Author: Luis Ángel Maza, Álvaro Menéndez and Maristela Mulino.
Topics: Economic situation, Spain, Financial analysis.
Full document
Summary
According to the data from the Banco de España’s Central Balance Sheet Data Office, employment continued to grow in non-financial firms in 2017 H1, at rates exceeding those of the previous year. The gross value added generated by these firms declined somewhat in the same period, highly conditioned by the unfavourable performance of a number of large firms which account for a substantial share of the sample. However, the favourable progress of financial costs and revenue led to a slight increase in ordinary profits, but this was not sufficient to prevent a moderate fall in the aggregate return ratios, although median returns increased in the period. Extraordinary costs and revenue also had a negative impact, as a result of which net profit contracted with respect to the level reached in the same period the preceding the year. Lastly, the variations in the financial position ratios of firms were negligible. This article describes these developments and also analyses, in a separate section, the strong growth of intra-group financing in large Spanish corporate groups since 2005, in a setting in which the organisational structure of these conglomerates has become increasingly complex.