COVID-19

CFO Pulse Check

Conducted April 8–30, 2020
Overview of CFOs’ Perspectives on the COVID- Crisis

68% of CFOs see demand shock

as the biggest challenge 85% of CFOs see
opportunities arising 81% of CFOs have implemented a COVID-
task force as a short-term reaction

Many CFOs see severe financial impacts Recovery

91% Working capital optimization

Nearly all
CFOs step 91%
87% 51% U shape
Company-wide cost reduction
expect sales to decrease on the brakes

89% Capex reduction

44% expect profits to decline by >% 25% L shape

 in  CFOs plan for cost reductions in their function

15% have significant cash constraints

83% 78% 75%

Process optimization New ways of working Digitization

Source: BCG’s COVID- CFO Pulse Survey.

1
CFOs’ Perspectives on the
COVID- Situation

2 CFOs’ Short-Term Response

CO
3 CFOs’ Midterm Response
A Serious Reduction in Demand Is the Biggest Immediate Impact PERSPECTIVES ON THE
COVID- SITUATION

Biggest immediate impacts of the COVID- crisis Expected impact on  total sales
Respondents (%) Respondents (%)

Reduction Increase by >% 8

68
in demand Increase by %–% 9

Supply chain Decrease by %–% 22

40
issues

Operational Decrease by %–% 33

37
issues

Client credit
62%
defaults or
32
Decrease by >% 29
credit quality
deterioration

Source: BCG’s COVID- CFO Pulse Survey.

Note: Respondents were able to choose multiple answers.
Many Companies Have Been Hit Hard, Creating a Sizable Gap PERSPECTIVES ON THE
COVID- SITUATION

Between the Haves and the Have Nots

Expected impact on  total sales Expected impact on  total profits Current cash situation
Respondents (%) Respondents (%) Respondents (%)

3
Increase by >% 8 Increase by >%
Increase by %–% 9 17% Increase by %–%
12 15%
21
No constraints
41 41%
Decrease by %–% 22 Decrease by %–%

20
Decrease by %–% 33 Decrease by %–% 33
Small constraints
45
62% 64% 59%
Decrease by >% 29 Decrease by >% 44
Significant 14
constraints

Source: BCG’s COVID- CFO Pulse Survey.

 Retail, Automotive, and Transportation Companies Have Been PERSPECTIVES ON THE
COVID- SITUATION

Hit the Hardest

Average expected
sales impact 

Increase
Food and staples retailing

Telecommunications
Food, beverage, and tobacco

Health care
Pharmaceuticals
Technology hardware Software
Insurance
Consumer durables

CO
Materials Media and entertainment
Banks Energy
Capital goods Diversified financials
Professional services
Automotive

Transportation
Retail

Decrease

Decrease Increase

Average expected
profit impact 
Source: BCG’s COVID- CFO Pulse Survey.
Note: Industries with three or fewer respondents were excluded.
Despite the Adversity, % of CFOs See Opportunities PERSPECTIVES ON THE
COVID- SITUATION

Expectations for new opportunities Expectations for new opportunities Observations

Respondents (%) Respondents (%)

Expectations show only a small

variation among industries, regions,
Significant 16 and company size:

• CFOs in health care, financial

51 Mostly top-line growth
services, and insurance are
the most optimistic

Some 68 • CFOs of Asian companies are

the most pessimistic

• CFOs of midsize companies

49 Mostly cost reduction see opportunities mostly to
reduce costs

No 16

Source: BCG’s COVID- CFO Pulse Survey.

Most CFOs Expect a Long Downturn, Showing Great Pessimism PERSPECTIVES ON THE
COVID- SITUATION

Expected shape of the global economic recovery Observations

Respondents (%)

8 V shape
A return to the preshock economic
16 level and growth rate
The expectations of European
W shape and US CFOs align with the overall
Multiple, repeated V shapes findings of a U-shaped recovery
as the base case
51
U shape
Asian CFOs are more skeptical
A longer dip before returning to the
preshock economic level and growth rate

L shape
25 The economic level and growth remain
at sustained lower rates

Source: BCG’s COVID- CFO Pulse Survey.

1
CFOs’ Perspectives on the
COVID- Situation

2 CFOs’ Short-Term Response

3 CFOs’ Midterm Response

CFOs Have Responded to the Crisis with the Right SHORT-TERM RESPONSE

Short-Term Moves

Immediate actions already taken or considered Immediate liquidity protection taken or considered
Respondents (%) Respondents (%)

Adaptation of short-term Stopped or delayed

88 66
planning and forecasting investments

Setup of COVID- Taking advantage of 43

81
task force emerging government aid

Liquidity protection 78 Drawing on lines of credit 37

or revolving loans

Client credit management 58 Stopped or delayed 37

payments

Adaptation of reporting 58 Preparing to raise new 25

debt or equity

Provision of liquidity Setting up a dedicated

22 24
support to supply chain cash office
partners
Suspending dividends or 22
buybacks

Source: BCG’s COVID- CFO Pulse Survey.

CFOs Recognize the Value of Communicating More with Investors SHORT-TERM RESPONSE

During the Crisis

Immediate actions in investor communications

Respondents (%)

Increased communication about

34
corporate actions and initiatives
77%
of CFOs have increased
Increased transparency on crisis
investor communication
impact and risks 27 or revised guidance

Provided revised guidance

16
No change
20
Delayed or reduced investor 3
communication for now

Source: BCG’s COVID- CFO Pulse Survey.

1
CFOs’ Perspectives on the
COVID- Situation

2 CFOs’ Short-Term Response

3 CFOs’ Midterm Response

CFOs Have Responded to the Crisis with the Right MIDTERM RESPONSE

Short-Term Moves

Expected type of actions to prepare for the midterm

Respondents (%)
Some Significant

Working capital 40 52 
optimization

Company-wide cost 40 51 
reduction

Capex reduction 48 40 

Tightened performance
45 42  37 Proceeding with ongoing transaction
management

Rework of risk 55 25 
management

Cost reduction in
21 Divesting to generate cash
58 13 
the finance function

Systematic transformation 42 16 
of the finance function
42 Search for acquisition opportunities
M&A 34 8 

M&A levers
Source: BCG’s COVID- CFO Pulse Survey.
Note: Because of rounding, not all percentages add up to . Excludes “None” and “Don't know” answers.
To Take Costs Out of the Finance Function, CFOs Are Focusing on MIDTERM RESPONSE

Process Optimization, New Ways of Working, and Digital

Expected type of cost-reduction levers to be employed in the finance function Examples

Respondents (%)
Some Significant

Process optimization 50 33  Process redesign, standardization

New ways of working 51 27  Lean, agile, daily routines

32 Next-level automation, RPA, AI, self-service

Digitization 43 

IT infrastructure optimization 52 20  ERP standardization, data storage, cloud

Organizational optimization 48 22  Functional rightsizing, delayering, reorganization

Simplification 42 27  Reduce number of profit and cost centers,

simplify data dimensions

Service level reduction 42 48 16 1  Reducing level of reporting or planning

Outsourcing 24 8 
Bundling, relocation, low-cost providers

Source: BCG’s COVID- CFO Pulse Survey.

Note: Because of rounding, not all percentages add up to . Excludes “None” and “Don't know” answers. AI=artificial intelligence;
ERP=enterprise resource planning; RPA=robotic process automation.