Before COVID-19 hit US shores, the country was experiencing the longest economic expansion on record. As it happens every time things go well, many economists and financial analysts began hypothesizing about what could go wrong.
One of the suspected triggers for the next recession (because no one was predicting a pandemic it seems) was the high level of corporate debt. Corporate debt has been edging up since 2010 as the economy recovered from the previous recession. And by Q3 2019, outstanding debt of the nonfinancial business sector, including corporates, had reached new highs compared to the size of the economy. The pandemic then became a catalyst in pushing debt even higher.
Rising debt in an expanding economy with low interest rates may not necessarily be a bad thing if companies are increasing investments as well. And in this issue of CFO Insights, we’ll explore whether investments are keeping pace with rising debt and why some of those investments may well add to productivity growth in the wider economy in the medium- to long-term.
MicroStrategy’s CFO on applying bitcoin to finance
MicroStrategy CFO Phong Le discusses the considerations that led the software company to begin acquiring bitcoin last year. Le explains the advantages of having bitcoin on the balance sheet, and what controls and communications processes need to be in place and followed. More
Oracle’s business and finance transformations: All-in on cloud
Doug Kehring, Oracle’s executive vice president of corporate operations, and Scott Gawel, senior vice president and corporate controller, discuss the strategy behind the enterprise software maker’s own cloud-focused business model transformation and explain how operating finance in a fully cloud-based environment can help CFOs innovate, create business value, and drive efficiencies. More
The health-savvy CEO
The pandemic renewed many CEOs’ concern for health for reasons far beyond the bottom line. For a health-savvy CEO, stakeholder health is a personal responsibility that can drive performance, relationships, and brand. More
In case you missed it
Hiring on all cylinders: What companies want from a post-pandemic CFO
In this issue of CFO Insights, three executive recruiters who specialize in financial officer searches deconstruct the current hiring process, identifying top skills for highly sought-after finance talent, and weigh in on which capabilities may have been permanently changed by the events of the last year. More
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