March 30, 20 - 10:07 am - LABS

Half of publicly traded firms in Brazil are able to endure 3 months with no revenues

Fipe Capital Market Studies Center and Economática, a consultancy, revealed that half of the publicly traded companies in Brazil have the resources to endure up to three months without revenues. A report on Estadão says that these firms would be able to pay suppliers, payroll and other operating expenses in the period using their cash reserves and investments.

A total of 245 companies were surveyed and the starting point was their balance sheets of December 2019. The simulation did not include dollar appreciation and considers that the companies would not have any revenue (not even installments from sales already made) and would be able to renegotiate all debts due in the period.

23.3% of firms

would enter negative results in reserves in the first 30 days. That number rises to 37.1% after two months and to 48.6% in 90 days.