CFO Optimism on the Rise

A CFO’s duties typically include gauging the financial strengths and weaknesses of their employer. Given that pulse-taking role, a chief financial officer’s outlook is also a useful gauge of the economy’s overall direction.

That said, CFOs are a relatively optimistic lot these days, a new survey of such senior executives by Grant Thornton concludes. In fact, at 58%, that’s the highest level of optimism since the third quarter of 2021.

Grant Thornton’s Q2 2024 CFO survey of more than 225 such c-suite occupants revealed several other positive indicators:

• 63% of respondents are confident in their organization’s ability to meet increased demand — a record high in the history of the survey. Respondents are also feeling confident about meeting supply chain needs (62%), growth projections (56%), cost-control goals (55%) and labor needs (55%).
• Nearly all (94%) CFOs say their companies are either using generative artificial intelligence (AI) or are exploring potential. Additionally, deployment of generative AI to assist with numerous tasks — especially cybersecurity and risk management — grew substantially compared to Q1.
• Three-quarters of the CFOs surveyed expect their net profit to grow over the next 12 months, while 69% expect their revenue to increase — a positive sign, since over two-thirds (67%) expect their expenses to increase.
• CFOs believe the cost of capital remains high, as 57% of respondents said cost optimization remains their top area of focus this quarter.

“Although most finance leaders are confident in their ability to control costs, it’s going to require significant focus,” said Paul Melville, National Managing Principal of CFO Advisory for Grant Thornton Advisors LLC. “The business environment is ripe for growth, but CFOs must manage costs to capitalize on it.”

Click here for more from the Grant Thornton study.