Warning: include(html/og-image.html): failed to open stream: No such file or directory in /home/u175552163/domains/sahanedizi.com/public_html/wp-content/plugins/featured-image-from-url/includes/thumbnail.php on line 94

Warning: include(): Failed opening 'html/og-image.html' for inclusion (include_path='.:/opt/alt/php74/usr/share/pear') in /home/u175552163/domains/sahanedizi.com/public_html/wp-content/plugins/featured-image-from-url/includes/thumbnail.php on line 94

Warning: include(html/social.html): failed to open stream: No such file or directory in /home/u175552163/domains/sahanedizi.com/public_html/wp-content/plugins/featured-image-from-url/includes/thumbnail.php on line 98

Warning: include(): Failed opening 'html/social.html' for inclusion (include_path='.:/opt/alt/php74/usr/share/pear') in /home/u175552163/domains/sahanedizi.com/public_html/wp-content/plugins/featured-image-from-url/includes/thumbnail.php on line 98

Warning: include(html/twitter-image.html): failed to open stream: No such file or directory in /home/u175552163/domains/sahanedizi.com/public_html/wp-content/plugins/featured-image-from-url/includes/thumbnail.php on line 103

Warning: include(): Failed opening 'html/twitter-image.html' for inclusion (include_path='.:/opt/alt/php74/usr/share/pear') in /home/u175552163/domains/sahanedizi.com/public_html/wp-content/plugins/featured-image-from-url/includes/thumbnail.php on line 103
Trends Top 5,000: Dark clouds hang over the economy - Business

Trends Top 5,000: Dark clouds hang over the economy – Business

Our country currently has more than 1.6 million active businesses. There have never been so many. This is revealed by the new Trends Top 5,000. A strong storm is looming however, with a massive number of trading companies shutting down after going through the lean years due to Covid.

Overall, the industrial and commercial companies of the Trends Top 5,000 achieved a turnover of 755 billion euros in 2021, an increase of 17%. It’s comfortable, but that doesn’t take into account the general price increase. As value added (167 billion euros) did not increase at the same rate, the ratio of value added/turnover of the main companies fell from 23.54% to 22.15%.

Profits (36 billion) have doubled. This is mainly due to some spectacular increases, such as at Engie, which went from a loss of 2 billion euros due to the impairment of assets to a profit of 1.9 billion euros, thanks in particular to an availability 92% of its nuclear reactor fleet. Engie had not reached such a percentage since the beginning of the century.

The financial sector saw its profits rise from 6.6 to 8.7 billion euros. However, this progress can only be attributed to the banking sector alone, which recorded a profit of 5.8 billion euros in 2021. In the insurance sector, profits remain almost unchanged at 2.9 billion euros. euros.

The holding companies again recorded good results. The cumulative profit of the country’s 100 largest holding companies in terms of portfolio income was 12.5 billion euros, compared with a loss of 3.6 billion euros in the previous fiscal year.

Our country currently has more than 1.6 million active businesses, the highest number ever. As usual, the top 5,000 companies are included in our ranking by turnover.

Bankruptcy risk

If we take a closer look at the financial health of companies, we see a low risk of bankruptcy at 64% and an acceptable one at 25%. For more than 11% of companies, however, the situation looks less rosy.

With 7,027 bankruptcies up to the third quarter, the total number of bankruptcies remains lower than before the pandemic (8,565 in 2019).

The question is to what extent the new government measures taken in the wake of the energy crisis will sustain this dynamic, which is somewhat artificial in terms of statistics. Be that as it may, a strong storm has been announced for some time now with a massive number of entrepreneurs spontaneously throwing in the towel, when they had continued somehow during the covid years. The number of cessations of activity at the end of September was 6% higher than in 2019. Compared to 2018, it is even 21%. A trend that continued in October.

Top trends © dr

In this context, companies are looking for the smallest euro and the money is kept as much as possible in their own pockets. While at the end of summer 2021, 30% of companies’ invoices were still paid on time, this figure has since fallen to 21%. Additionally, 19% of these invoices are more than 90 days past due, compared to 15% a year ago. This has the consequence that one company can lead another to its loss, since it is not uncommon for a commercial chain to break at its weakest link. And not just for SMEs.

Fortunately, there were 92,417 entrepreneurs brave enough to start their own business in the first three quarters of 2022. Fewer than last year (99,314), but more than before the pandemic (88,752 in 2019 and 82 908 in 2018).

Just a postponement of the kill?

The automatic indexation of wages which will take place in January provides welcome support for household purchasing power. But for many companies, this is yet another bitter pill to swallow. This could lead some companies that were simply looking for new employees to expand to opt for layoffs.

Business plans should also be severely scaled back. If reorganizations and restructurings have been postponed, companies will not be able to keep pushing deadlines. Requests for technical unemployment have increased in recent weeks due to the energy crisis.

The impending recession will undoubtedly take its toll, and not just in companies that have benefited in one way or another from an (often artificial) reprieve over the past period.

Trends Top 5,000 will appear in Trends magazine on November 17 and will be available in digital version from this date on www.trendstop.be/pdf

.

Overall, the industrial and commercial companies of the Trends Top 5,000 achieved a turnover of 755 billion euros in 2021, an increase of 17%. It’s comfortable, but that doesn’t take into account the general price increase. As value added (167 billion euros) did not increase at the same rate, the ratio value added/turnover of the main companies fell from 23.54% to 22.15%. Profits (36 billion) increased double. This is mainly due to some spectacular increases, such as at Engie, which went from a loss of 2 billion euros due to the impairment of assets to a profit of 1.9 billion euros, thanks in particular to an availability 92% of its nuclear reactor fleet. Engie had not reached such a percentage since the beginning of the century. The financial sector saw its profits increase from 6.6 to 8.7 billion euros. However, this progress can only be attributed to the banking sector alone, which recorded a profit of 5.8 billion euros in 2021. In the insurance sector, profits remain almost unchanged at 2.9 billion euros. ‘euros.Holdings again recorded good results. The cumulative profit of the country’s 100 largest holding companies in terms of portfolio income was 12.5 billion euros, compared to a loss of 3.6 billion euros in the previous fiscal year.Our country currently has more than 1.6 million active businesses, the highest number ever. As usual, the 5,000 largest companies feature in our ranking by turnover. If we take a closer look at the financial health of the companies, we see a low risk of bankruptcy at 64% and an acceptable one at 25%. For more than 11% of companies, however, the situation looks less rosy. With 7,027 bankruptcies until the third quarter, the total number of bankruptcies remains lower than before the pandemic (8,565 in 2019). The question is to what extent the new government measures taken in the wake of the energy crisis will sustain this dynamic, which is somewhat artificial in terms of statistics. Be that as it may, a strong storm has been announced for some time now with a massive number of entrepreneurs spontaneously throwing in the towel, when they had continued somehow during the covid years. The number of cessations of activity at the end of September was 6% higher than in 2019. Compared to 2018, it is even 21%. A trend that continued in October. In this context, companies are looking for the smallest euro and the money is kept as much as possible in their own hands. While at the end of summer 2021, 30% of companies’ invoices were still paid on time, this figure has since fallen to 21%. Additionally, 19% of these invoices are more than 90 days past due, compared to 15% a year ago. This has the consequence that one company can lead another to its loss, since it is not uncommon for a commercial chain to break at its weakest link. And not just for SMEs. Fortunately, there were 92,417 entrepreneurs brave enough to start their own business in the first three quarters of 2022. Fewer than last year (99,314), but more than before the pandemic (88,752 in 2019 and 82,908 in 2018). The automatic indexation of wages which will take place in January provides welcome support for household purchasing power. But for many companies, this is yet another bitter pill to swallow. This could lead some companies that were simply looking for new employees to expand to opt for job cuts. Business plans should also be severely scaled back. If reorganizations and restructurings have been postponed, companies will not be able to keep pushing deadlines. Claims for technical unemployment have increased in recent weeks due to the energy crisis. The impending recession will undoubtedly take its toll, and not only in companies that have benefited in one way or another from a reprieve ( often artificial) over the past period. .

.

Leave a Comment

Your email address will not be published. Required fields are marked *