detailed survey results 4q 20161 detailed survey results —4q 2016 american institute of cpas 2...

1

Detailed Survey Results — 4Q 2016

2American Institute of CPAs

Survey Background

Conducted between November 9-30, 2016

Quarterly Survey

CPA decision makers (primarily CFOs, CEOs and Controllers)

AICPA members in Business & Industry only

600 qualified responses

2


Survey Highlights

3

74Overall index

improved

Up from 69 last quarter,

and 69 in Q4 2015

All components up

quarter to quarter and

year to year

Organization optimism up

from 68 to 74

Revenue index increases

three points from 75 to 78;

profits from 69 to 74

Hiring and spending plans

also improve

62%Now optimistic

about US Economy

Up from only 38% in Q3

Outlook for economy at

highest level since 1Q

2015

Optimism in retail

bounces back from only

33% in Q3 to 50%

optimistic in Q4

Manufacturing and other

sectors also show

improved optimism

62%Have plans for

expansion

Index component

improves from 72 to 74

as those with plans to

contract lower than Q3

Plans for companies

with revenues >$100

million to < $1 billion

increase from 59% to

67%

Expansion plans for

companies with

revenues > $1 billion

ease from 66% to 62%

4American Institute of CPAs 4


CPA Outlook Index

The CPA Outlook Index is the composite of the following nine

indicators at equal weights:• U.S. Economy Optimism - Respondent optimism about the U.S. economy

• Organization Optimism - Respondent optimism about prospects for their own organization

• Expansion Plans - Respondent expectations of whether their business will expand over the

next 12 months

• Revenue - Expectations for increases or decreases in revenue over the next 12 months

• Profits - Expectations for increases or decreases in profits over the next 12 months

• Employment - Expectations for increases or decreases in headcount over the next 12 months

• IT Spending - Plans for IT spending over the next 12 months

• Other Capital Spending - Plans for capital spending over the next 12 months

• Training & Development - Plans for spending on employee training and development over the

next 12 months

A reading above 50 indicates a generally positive outlook with increasing activity.

A reading below 50 indicates a generally negative outlook with decreasing

activity.

The CPA Outlook Index is a robust measure of sentiment about the U.S. economy that is

supported by the unique insight and knowledge that CEOs, CFOs, Controllers, and other

CPA executives have about the prospects for their own organizations, their expectations

for revenues and profits, and their plans for spending and employment.

5


CPA Outlook Index (CPAOI)

4Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q151Q162Q163Q164Q16

CPA OutlookIndex

64 69 67 63 59 66 69 69 69 70 72 75 78 74 72 71 69 63 68 69 74

64

6967

6359

6669 69 69 70

7275

7874

72 7169

63

68 69

74

CPA

Outlook

Index – 74

6


CPA Outlook Index Component Indicators

7

Component 4Q15 1Q16 2Q16 3Q16 4Q16 ∆Q to Q ∆Y to Y

U.S. Economic Optimism 64 47 59 58 76 18 12

Organization Optimism 70 63 68 68 74 06 04

Expansion Plans 70 63 69 72 74 02 04

Revenue 74 68 74 75 78 03 04

Profits 67 60 63 69 74 05 07

Employment 67 59 63 66 68 02 01

IT Spending 77 73 76 75 77 02 00

Other Capital Spending 72 67 70 71 73 02 01

Training & Development 68 67 67 70 71 01 03

Total CPAOI 69 63 68 69 74 05 05


CPA Outlook Index (CPAOI) vs. GDP

3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

CPA OutlookIndex

71 69 63 68 69 74

Changein GDP

2.0% 1.4% 0.8% 1.4% 3.2%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

0

10

20

30

40

50

60

70

80

90

100

GDP Growth

CPA Outlook Index

8


62%Optimism for US

economy up from

only 38% in Q3

Election results cited by both

optimists and pessimists

Optimists noted hopes for

reduced regulation, repeal of

ACA and lower income taxes

Pessimists noted global

unrest, healthcare costs, oil

prices and anticipated interest

rate increases

61%Organizational

optimism up from

53% in Q3

Optimism for respondent’s

own organization at 61% is

higher than any period since

1Q 2015

The percentage of

companies with expansion

plans maintained the Q3

level of 62%

The percentage of

companies expecting their

businesses to contract

eased from 17% in Q3 to

14% in Q4

US Economy and Organization Highlights

28%Inflation concerns

increase to 2014

levels

Concern about labor costs

continues to be most

significant but eased from

55% to 43%

Raw material cost increases

now concern 20% up from

18% in Q3

Energy cost and interest rate

concerns both jumped –

• Energy from 5% to 10%

• Interest from 14% to 23%

10


Optimism & Expansion

U.S., Organization, Expansion

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

U.S. 19% 43% 34% 22% 21% 32% 49% 44% 38% 49% 51% 52% 64% 68% 52% 48% 45% 28% 37% 38% 62%

Organization 45% 55% 54% 44% 41% 50% 57% 55% 57% 59% 61% 65% 67% 63% 58% 59% 53% 44% 53% 53% 61%

Expansion 59% 61% 61% 56% 50% 58% 62% 62% 62% 63% 64% 68% 71% 64% 61% 60% 57% 52% 58% 62% 62%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

11


For your business, are you more

concerned about inflation or deflation?

43%

37%

33% 32% 31%36%

30%35%

31%29%

32%

38%

27%23% 23%

25%23%

14%

23%

11%

28%

11%6%

9% 10% 9%6% 7% 7% 7% 8%

6% 5%10% 12% 10% 10% 11%

22%

12%

18%

4%


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Inflation or Deflation?

Inflation Deflation

For your business, over the next 6

months, are you more concerned

about the possibility of …?

12


Food costsEnergycosts

Raw materialcosts

Labor costsInterest

ratesOther

4Q15 2% 12% 23% 37% 22% 5%

1Q16 3% 6% 19% 44% 19% 9%

2Q16 0% 11% 20% 44% 16% 9%

3Q16 4% 5% 18% 55% 14% 4%

4Q16 1% 10% 20% 43% 23% 4%

2%

12%

23%

37%

22%

5%3%

6%

19%

44%

19%

9%

0%

11%

20%

44%

16%

9%

4% 5%

18%

14%

4%

1%

10%

20%

43%

23%

4%

Inflationary Factor Representing the Most Significant Risk to your Business

Inflationary Risks and Costs

13


Revenues

and Profits Revenue and Profit

projections both

improve

Expected revenue increase for

coming twelve months

improves from 2.9% in Q3 to

3.6% in Q4

Profit projections also

increase from a 2.3% expected

increase in Q3 to 3.1% in Q4

Hiring and

Employment Headcount plans

improve; costs also

tick up

Anticipated increases in

headcount for the coming

year increased to 1.6% in q4,

up from 1.3% in Q3.

Salary and benefit costs are

expected to increase at a

rate of 2.3%, up from 2.1% in

Q3.

Healthcare cost projections

also jumped from 5.6% to

6.1%, the highest expected

rate of increase since Q3

2014

Key Performance Indicator Highlights

Spending

PlansR&D spending and

“other capital” lead

the improvements

Spending for IT continues to

‘lead the league’, projected

at 2.9% in Q4

Training remains constant at

1.6% quarter to quarter

Other capital spending

anticipated increase

improves from 2.4% in Q3 to

2.7% in Q4

R&D spending jumps from

1.1% in Q3 to 1.5% in Q4, the

highest expected rate

increase since Q3 2015

15


Key Performance Indicators

Expected Growth in

Revenue and Profits


Revenue 2.8% 3.5% 3.1% 2.6% 2.1% 3.0% 3.1% 3.3% 3.6% 3.6% 3.8% 4.4% 4.7% 3.6% 3.2% 3.3% 2.9% 1.7% 3.0% 2.9% 3.6%

Profit 2.4% 2.9% 2.6% 2.2% 1.4% 2.1% 2.4% 2.5% 2.7% 2.9% 2.9% 3.6% 3.9% 2.8% 2.4% 2.6% 2.0% 0.7% 1.5% 2.3% 3.1%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Thinking about the coming 12 months, please

comment on the probable change for your

organization for …

16


Employees, Salary & Benefits

and Healthcare Costs


Employees 1.2% 1.5% 1.1% 0.8% 0.5% 1.1% 1.0% 1.3% 1.2% 1.5% 1.3% 1.8% 2.1% 1.6% 1.5% 1.3% 1.0% 0.5% 1.1% 1.3% 1.6%

Salary & Benefits 2.1% 2.0% 2.0% 1.9% 1.9% 2.2% 2.2% 2.3% 2.2% 2.2% 2.1% 2.4% 2.5% 2.0% 2.1% 2.0% 1.8% 1.4% 1.8% 2.1% 2.3%

Healthcare 6.0% 6.2% 6.3% 6.4% 6.4% 6.3% 6.7% 6.8% 6.6% 6.2% 5.7% 6.6% 5.9% 5.8% 5.8% 5.8% 5.4% 5.4% 5.7% 5.6% 6.1%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%



organization …

17


Pricing & Other Costs

Average Change Expected


Prices Charged 1.2% 1.4% 1.2% 1.2% 1.1% 1.3% 1.1% 1.3% 1.3% 1.3% 1.8% 1.7% 1.7% 1.4% 1.4% 1.6% 1.5% 0.8% 1.3% 1.5% 1.8%

Input Prices 2.1% 2.1% 1.9% 1.9% 1.9% 2.0% 1.8% 1.9% 1.8% 1.8% 2.4% 2.3% 2.1% 2.1% 2.0% 2.2% 2.1% 1.5% 2.1% 1.9% 2.4%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%



organization …

18


Spending Plans

IT, Other Capital & Training


IT 2.7% 2.8% 2.8% 2.4% 2.1% 2.7% 2.8% 2.7% 2.9% 3.2% 3.1% 3.3% 3.3% 3.1% 3.1% 3.0% 2.8% 2.3% 2.6% 2.8% 2.9%

Other Capital 2.2% 2.1% 2.0% 1.7% 1.3% 1.9% 2.2% 2.2% 2.1% 2.3% 2.4% 2.9% 3.2% 2.4% 2.4% 2.5% 2.4% 1.5% 2.1% 2.4% 2.7%

Training 1.2% 1.4% 1.2% 1.0% 0.7% 1.3% 1.3% 1.3% 1.5% 1.7% 1.8% 2.0% 2.2% 1.6% 1.8% 1.4% 1.4% 1.1% 1.3% 1.6% 1.6%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Thinking about the coming 12 months,

please comment on the probable

change for your organization for …

19


Spending Plans

Marketing & R&D


Marketing 1.8% 1.8% 1.5% 1.1% 1.0% 1.5% 1.4% 1.5% 1.5% 1.7% 1.6% 1.6% 1.8% 1.6% 1.8% 1.6% 1.6% 1.4% 1.4% 1.4% 1.5%

R&D 0.9% 1.2% 1.0% 0.6% 0.6% 0.9% 1.0% 1.0% 1.0% 1.0% 1.0% 1.2% 1.3% 1.3% 1.2% 1.7% 1.2% 0.9% 1.1% 1.1% 1.5%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%



organization for …

20


Hiring Plans

55%Hiring plans continue to

improve

55% of all companies say they have the

appropriate number of employees

Returning to levels seen in Q4 2015 and Q1

2016

Excess number of employees eased four

points to only 9% down from 13% in Q3

35%More than 1/3 have too few

employees

The percentage with too few employees who

are reluctant to hire declined to 15%

Down two points from Q3 and three points

from 18% in Q2 2016

Those with too few employees that are

planning to hire eased a point from 21% in Q3

to 20% in Q4

22


Overall staff situation

relative to your needs

We have an excessnumber ofemployees

We haveapproximately the

appropriate numberof employees

We have too fewemployees, but arehesitating to hire

We have too fewemployees and are

planning to hireOther

4Q15 10% 53% 17% 18% 2%

1Q16 13% 53% 16% 15% 3%

2Q16 12% 49% 18% 19% 2%

3Q16 13% 48% 17% 21% 1%

4Q16 9% 55% 15% 20% 1%

10%

53%

17% 18%

2%

13%

53%

16% 15%

3%

12%

49%

18% 19%

2%

13%

48%

17%

21%

1%

9%

55%

15%

20%

1%

Given current conditions, how would you

characterize your overall staffing situation

relative to your needs (i.e., do you have excess

capacity or are employees stretched)?

23


Top Challenges Facing Organizations

Regulatory requirements maintained their place at the top of the

challenges list

Employee and benefit costs jumped three spots to the second place

in the ranking of challenges

Domestic economic challenges, availability of skilled personnel and

domestic competition each fell one slot this quarter

Developing new products and services jumped from ninth place to

sixth place, switching places with concern about stagnant/declining

markets which fell from sixth to ninth

Domestic political leadership maintained the seventh spot

Changing customer preferences returned to the top ten, claiming

eighth place, the same as the Q4 2015 ranking

Staff turnover similarly returned to the top ten for the first time since

it claimed the number ten slot in Q4 2014

25


Top Challenges for OrganizationsPlease indicate the top three

challenges for your organization

4Q 15 1Q16 2Q16 3Q16 4Q16

1Regulatory

requirements/changes

Domestic economic

conditions

Regulatory


Regulatory


Regulatory


2Domestic economic

conditions

Regulatory


Domestic economic

conditions

Domestic economic

conditionsEmployee and benefits costs

3 Domestic competition Stagnant/declining marketsAvailability of skilled

personnel

Availability of skilled

personnel

Domestic economic

conditions

4Availability of skilled

personnelDomestic competition Domestic competition Domestic competition

Availability of skilled

personnel

5 Stagnant/declining marketsAvailability of skilled

personnelEmployee and benefits costs Employee and benefits costs Domestic competition

6 Employee and benefits costs Employee and benefits costs Stagnant/declining markets Stagnant/declining marketsDeveloping new

products/services/markets

7 Global economic conditions Domestic political leadership Domestic political leadership Domestic political leadership Domestic political leadership

8Changing customer

preferences

Financing (access/cost of

capital)

Developing new

products/services/marketsLiquidity

Changing customer

preferences

9 Domestic political leadershipDeveloping new

products/services/marketsLiquidity

Developing new

products/services/marketsStagnant/declining markets

10 Global economic conditions Domestic political leadership Energy costsFinancing (access/cost of

capital)Staff Turnover

26


Industry, Region and Business-size Outlook - 1 of 3

Optimism Improves for Retail, Wholesale Trade and Manufacturing

Construction, Real Estate and Finance & Insurance also see improved optimism

Retail trade optimism improved from 33% in Q3 to 50% in Q4

Wholesale trade optimism also improved slightly from 45% to 48%

Hiring for retail continues to be soft and eased further from a projected rate of 1.1% in Q3 to only 0.8% in Q4

Manufacturing optimism also improved from 47% to 55%

Manufacturing hiring improved from 1.4% to 1.7%

Construction optimism improved from 69% in Q3 to 75% in Q4

Real Estate and Property improved from 62% to 69%

Finance & Insurance from 57% to 66% optimistic

Construction hiring improved from 1.0% to 2.0 %

Real Estate hiring improved from 1.5% to 1.7%

Finance and Insurance maintained its 1.8% rate

Banking sector hiring is also expected to improve considerably, up from 0.6% in Q3 to 2.3% in Q4

28



Technology and Professional Service see declines in Optimism

Healthcare providers constant; Healthcare –other up significantly

Technology optimism eases slightly from 71% in Q3 to 67% in Q4

Technology hiring also falls off from 4.86% in Q3 to 2.0% in Q4

Professional service optimism falls off sharply from 67% to only 48% optimistic

Professional service hiring continues to be strong; eases slightly from 3.2% in Q3 to 2.5% in Q4

Healthcare providers maintained their relative optimism, improved a point to 69% in Q4, up from 68% in Q3

Healthcare – other jumped significantly from only 50% optimistic in Q3 to 80% optimistic in Q4

Healthcare providers also top the list in terms of plans for increased hiring in the coming year at a 2.8% rate

29



South and Midwest regions see improvement in optimism

Smallest and largest employers most hesitant to hire

South – optimism in South bounces back from 48% in Q3 to 68% in Q4

Midwest – also recovers, improving from 53% to 62% optimistic in Q4

West – improves slightly from 57% to 59%

Northeast – gives up two points, falling from 58% to 56%

Employers with > $1 billion in revenues is the segment with the highest percentage of respondents (13%) with excess employees; they are also the segment with too few employees (34%). However, 22% of the largest companies with too few employees are hesitant to hire.

Employers with revenues < $10 million are also mixed; only 6% have excess employees; while 30% have too few employees, only 11% are planning to hire; 19% are hesitant.

Plans to hire are highest in the category of employers with revenues in the $100 million to $1 billion category at 27%

30


Organization Optimism by Industry

66% 69%

85%

65%

28%39%

50%

33%

50%

0%

20%

40%

60%

80%

100%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Retail Trade

66%

54%65%

54%

23%

42%50%

45% 48%

0%

20%

40%

60%

80%

100%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Wholesale Trade

71%63%

55% 53%

41%48% 48% 47%

55%

0%

20%

40%

60%

80%

100%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Manufacturing

50%

80%

60%67%

52% 53%61%

71% 67%

0%

20%

40%

60%

80%

100%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Technology

31



68% 72%64% 68%

60%

46%

70% 67%

48%

0%

20%

40%

60%

80%

100%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Professional Service

71%66%

74%65%

49%41%

58% 57%66%

0%

20%

40%

60%

80%

100%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Finance & Insurance

64% 68% 65%69%

48% 52%62% 62%

69%

0%

20%

40%

60%

80%

100%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Real Estate

78%83%

64% 64%

51%59% 59%

69%75%

0%

20%

40%

60%

80%

100%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Construction

32



75%

56%50%

67%

44%

67% 63%

50%

80%

0%

20%

40%

60%

80%

100%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Health Care Other

65%

49% 47%

69%

38%

52%

69% 68% 69%

0%

20%

40%

60%

80%

100%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Health Care Provider

33


Expected Employment Change

by Industry



organization for Number of Employees

1.1

1.7

0.6

1.4

1.8

1.7

1.2

1.0

4.9

0.6

3.2

2.9

0.8

1.5

1.6

1.7

1.8

1.8

1.9

2.0

2.3

2.5

2.8

0.0 1.0 2.0 3.0 4.0 5.0 6.0

Retail Trade

Real Estate Property

Not for Profit

Manufacturing

Finance and Insurance

Mining

Trans & Distribution

Construction

Technology

Banking

Professional Services

Healthcare Provider

Q4

Q3

2.0

34


Organization Optimism

by Region

4Q15 1Q16 2Q16 3Q16 4Q16

South 48% 38% 53% 48% 68%

Midwest 55% 45% 53% 53% 62%

West 55% 55% 54% 57% 59%

Northeast 58% 48% 62% 58% 56%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Please select the rating that best describes your

view for the economic outlook for your own

organization for the next 12 months.

35


Expansion Plans by

Business Size


< $10 million 54% 55% 58% 50% 44% 52% 53% 56% 56% 56% 59% 59% 65% 59% 47% 61% 52% 44% 55% 53% 52%

$10 to <$100 million 56% 60% 59% 58% 52% 58% 63% 61% 63% 62% 65% 69% 72% 63% 66% 62% 57% 59% 61% 65% 63%

$100 million to <$1 billion 62% 66% 66% 56% 53% 63% 63% 64% 62% 71% 65% 73% 72% 67% 65% 60% 57% 50% 61% 59% 67%

> $1 billion 69% 65% 62% 54% 53% 68% 68% 68% 64% 69% 66% 71% 75% 77% 53% 56% 59% 49% 50% 66% 62%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

52% of all businesses expect to expand a little in the next twelve months 10% expect to expand a lot. 36% expect to contract a little or stay the same Only 1% expect to contract a lot vs 4% in Q3

Please indicate whether you expect your

business to expand or contract over the

next 12 months

36


Businesses in the >$1 billion range

are most likely to have excess

employees

We have anexcess numberof employees

We haveapproximately

the appropriatenumber ofemployees

We have toofew employees,

but arehesitating to

hire

We have toofew employees

and are planningto hire

Other

< $10 million 6% 63% 19% 11% 1%

$10 to <$100 million 9% 58% 12% 21% 0%

$100 million to <$1 billion 10% 47% 14% 27% 2%

> $1 billion 13% 52% 22% 12% 1%

6%

63%

19%

11%

1%

9%

58%

12%

21%

0%

10%

47%

14%

27%

2%

13%

52%

22%

12%

1%

Given current conditions, how would you

characterize your overall staffing situation

relative to your needs (i.e., do you have excess

capacity or are employees stretched)?

37


2016 Elections – impact on business

Liquidity – plans and expectations

Survey Within a Survey

38


Presidential Election –

A Factor in Business

Planning?

Now that you know the outcome of the 2016

presidential election, how much will the

outcome be a consideration or factor in your

company’s business planning, budgeting or

forecasting for the next fiscal year?

25%

30%

30%

15%

0% 5% 10% 15% 20% 25% 30% 35%

NOT A FACTOR

SLIGHT OR SOMEWHAT A FACTOR

MODERATE FACTOR

SIGNIFICANT FACTOR

39



Most likely impact on

hiring

What are your company’s most likely

actions concerning job creation and hiring,

now that the presidential election has been

decided?

2%

9%

9%

36%

44%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

REDUCE NEW HIRING

INCREASE HIRING

DEFER NEW HIRING (ONLY REPLACE ESSENTIAL PERSONNEL)

CONTINUE TO HIRE AT CURRENT PACE

ELECTION IS NOT A FACTOR IN HIRING

40


If you were to hire more people, what type of

position would you hire most of:

4%

6%

8%

11%

71%

0% 10% 20% 30% 40% 50% 60% 70% 80%

TEMPORARY EMPLOYEES

CONTRACT EMPLOYEES

I DON'T KNOW

PART-TIME EMPLOYEES

FULL-TIME EMPLOYEES


Type of position most

likely if hiring

41



Capital spending and

business expansion plans

With the presidential election over, what are

your company’s most likely actions concerning

capital expenditures and business expansion,

including borrowing and financing?

3%

6%

13%

38%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

REDUCE CAPITAL EXPENDITURES AND BUSINESS EXPANSION SPENDING

DEFER CAPITAL EXPENDITURES AND BUSINESS EXPANSION SPENDING

INCREASE CAPITAL EXPENDITURES AND BUSINESS EXPANSION SPENDING

ELECTION OUTCOME IS NOT A FACTOR IN CAPITAL EXPENDITURES AND BUSINESS EXPANSION SPENDING

CONTINUE TO SPEND ON CAPITAL EXPENDITURES AND BUSINESS EXPANSION AT CURRENT PACE

42


Liquidity - Current

Position

How would characterize your organization’s

current liquidity position?

8%

11%

14%

18%

49%

0% 10% 20% 30% 40% 50% 60%

LESS THAN WE NEED, BUT CREDIT/CAPITAL AVAILABILITY AND/OR PRICING IS A BARRIER

LESS THAN WE NEED, AND PLAN TO RAISE CAPITAL

MORE THAN WE NEED AND PLAN TO DEPLOY

MORE THAN WE NEED, BUT RELUCTANT TO DEPLOY

ABOUT RIGHT

43


Liquidity - Expectations

for financing difficulty

Do you expect it to be more or less difficult to

obtain your required financing in the coming

year?

11%

13%

18%

58%

0% 10% 20% 30% 40% 50% 60% 70%

LESS DIFFICULT

MORE DIFFICULT

NA

ABOUT THE SAME

44


Liquidity – Plans for level

of corporate cash holdings

Are you planning on reducing your

corporate cash holdings in the next 12

months? If so, to what degree?

2%

11%

14%

14%

59%

0% 10% 20% 30% 40% 50% 60% 70%

YES, SIGNIFICANTLY

YES, MODERATELY

YES, A BIT

NO, PLANNING TO ADD TO LIQUIDITY HOLDINGS

NO, MAINTAINING LIQUIDITY HOLDINGS

45


Liquidity – Plans for

companies reducing their

cash holdings?

If you indicated that you plan to reduce cash

holdings, what are your plans for the cash?(Check all that apply – percentages add to more than

100% due to multiple plans)

30%

6%

7%

18%

19%

20%

20%

36%

0% 5% 10% 15% 20% 25% 30% 35% 40%

OTHER/NOT SURE

SHIFTING TO LONGER-TERM INVESTMENT MIX

STOCK BUYBACK

ACQUISITION OF OTHER BUSINESS TRANSACTION

DIVIDEND OF OTHER EQUITY DISTRIBUTION

REDUCING DEBT

BUSINESS EXPANSION/HIRING

CAPITAL PROJECTS

46


Liquidity – Placement

of funds shifted in

response to money

market regulations

Have you taken any steps to shift your cash

allocation from money market funds in

response to new regulations that limit this

practice? If so, where are you putting the

funds?

1%

1%

3%

4%

11%

80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

SHORT-TERM BOND FUNDING

EXCHANGE-TRADED FUNDS

OTHER (PLEASE SPECIFY)

GOVERNMENT FUNDS

NOT SURE

NO, WE HAVEN'T SHIFTED ALLOCATION

47


Demographics

20%

34%11%

12%

6%

4%

13%

Size of Organization

$0 to under $10 million

$10 million to under $50 million




$500 million to under $1 billion

$1 billion or more

17%

69%

1% 12%

1%

Type of Organization

Publicly Listed Company

Privately Owned Entity

Government

Not for Profit

Other

12% 2%

7%

43%1%

20%

5%5%

4%

Position

CEO/President

COO

VP

CFO

CAO/CAE

CIO

Controller

Director

Accounting, Audit, Tax or Technology Manager

Other

49

50

For additional information contact:

Kenneth W. Witt, CPA, CGMA Lead Technical Manager

Management [email protected]

Cary JonesAssociate Manager

Business, Industry & Government Team [email protected]

50

mailto:[email protected]

mailto:[email protected]

detailed survey results 4q 20161 detailed survey results —4q 2016 american institute of cpas 2...

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