Cash-flow Ratio of Austrian Manufacturing Declines in 2019
At 9.9 percent, the cash flow-to-sales ratio in Austrian manufacturing in 2018 was still well above the long-term average of 9.5 percent. According to WIFO's econometric estimation models, the cash-flow ratio fell to 8.8 percent in 2019. Due to the deep recession caused by the COVID-19 pandemic and the measures taken against it, earnings power is shrinking further in 2020. The decline is likely to be deeper than in the financial market and economic crisis in 2008-09.