More businesses in Slovakia reported a negative impact on profitability than anywhere else in Eastern Europe.
Most respondents in Slovakia (48%) felt that both the domestic economy and international trade will improve over the next six months. A similar percentage (47%) also felt the global economy would deteriorate over the same timeframe. There are several potential reasons for this. The first is that businesses in Slovakia were carrying the region’s highest levels of capital costs. Respondents to the poll told use that they had to borrow the finance to cover poor cash flow. The second reason, a severe drop in sales volume, negatively impacted profitability while also compounding issues with cash flow.
In fact, Slovakia ranks second in the region for the percentage of respondents (59%) who said that the economic crisis negatively impacted revenue and cash flow. This means that the capital costs could not be offset by revenue or cash flow, resulting in a negative impact
Key takeaways from the report
- A higher proportion of businesses in Slovakia reported a negative impact on profitability caused by the pandemic-induced economic crisis than in other country in Eastern Europe
- Economic crisis causes region’s sharpest increase in late payments
- Slovakia has the lowest average DSO in Eastern Europe
- A significant number of businesses lay off staff
Interested in getting to know more?
For a complete overview of the corporate payment behaviour in Slovakia during the COVID-19 pandemic and global recession, please download the complete report. The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:
- Steel -metals
- Business services
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