U.S. Firms Expect Deeper, More Prolonged Economic Fallout
(Bloomberg) -- As Covid-19 business disruptions continued to mount through April, more top executives grew worried about corporate liquidity and long term survival, according to surveys conducted by the consultancy firm West Monroe.
“The fear is that as businesses are forced to alter their operations overnight, they take drastic measures, cease communications, and go dark on suppliers and vendors,”said Kevin McCarty, chief executive officer of West Monroe. “If this happens, we are going to have a much bigger problem on our hands than we do already.”
Concerns about liquidity increased from 15% to 21% between March and April, according to the survey of 150 C-suite executives with company revenues in excess of $250 million. Further, one in nine firms were worried about their long term survival.
Liquidity concerns may have long-term implications as well, 19% of firms plan to take a much closer look at their debt positions in the coming months.
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