Methodology of Time Series of Annual Financial Indicators

I. Data Sources

The data source for the time series is the annual structural survey of enterprises of selected production industries (P5-01) supplemented by information from administrative data sources. The structural survey P4-01 (of small enterprises of selected production industries), which was the source of data on unincorporated natural persons for years 2005–2009, was cancelled in 2010 and therefore data on natural persons have been modelled using administrative data.

More information about the survey can be found at:
https://www.czso.cz/csu/vykazy/p-5-01-rocni-vykaz-ekonomickych-subjektu-vybranych-produkcnich-odvetvi_psz_2019  (Czech only).

II. Population and Sample

Population for the survey P5-01 involves legal and natural persons incorporated in the Commercial Register and selected unincorporated natural persons.

The sample involves reporting units completing the statistical questionnaire. If the reporting unit is enlisted in the sample depends on its principal activity and size measured by the number of employees, amount of sales (revenues), and amount of assets. The sample is subdivided into three parts as follows:

1. The part of the sample, which is surveyed in an exhaustive manner, i.e. active economic units featuring parameters compliant with an exhaustive sampling automatically fall into those of having the reporting duty. These are the units, whose absence in the sample could reduce the data validity at the level of a certain industry, or a size group. The exhaustive part of the sample is updated during the reference period.

2. The part of 100% sample, which involves the sampling strata (simply a group of enterprises with the same economic activity and of the same size by the number of employees), whose presence in a large population is important in order to process imputations in a correct way and to obtain the form of final outcomes. The part of exhaustive samples is not updated during the reference period.

3. The part of the stratified random sample, which includes smaller size units, which do not meet the conditions of the whole population or an exhaustive sample.

The aforementioned subdivision applies to the samples of all years in the time series, but the boundaries between them were different in respective years.

For 2019 the exhaustive part of the sample includes reporting units with 100+ employees, units with annual turnover CZK 250+ million, units with financial assets net CZK 300+ million, units with assets net CZK 300+ million, units with tangible fixed assets CZK 100+ million, units with intangible fixed assets CZK 20+ million and all public non-financial corporations.

III. Methods of Imputations and Estimation

The comprehensive reform of statistical surveys, which also involved the transition from the classification of Industrial Classification of Economic Activities (OKEČ) to that of CZ-NACE, also brought changes to the system of imputations. The use of administrative data for making of total estimates has been significantly broadened. Since 2008 the imputation method instead the weighing method has been applied. That means each unit (with 20+ employees) or group of units (with 0-19 employees) is imputed the required data structure on the basis of the development in the same stratum and information from administrative data sources, according to predefined relations between indicators.

Within the framework of the annual survey P5-01 imputations are used in the following cases:

1. Total non-response. Data are imputed to units from the sample, which failed to return the questionnaire. The imputation is carried out using known administrative data or data from other statistical surveys.

2. Partial non-response. This case occurs when a reporting unit has completed a part of the questionnaire in high quality, but the rest must be imputed. Typical example of partial non-response in the case of the questionnaire P5-01 are some organizational units of foreign companies, which are able to report truthfully revenues and expenses achieved on the territory of the CR, but they are unable to distinguish the amount of assets/liabilities from the whole of their foreign mother company. Another reason for the use of the partial non-response method is the imputation of reporting units completing the version of the questionnaire P5-01 with a simplified structure.

3. Estimations of non-sampled parts of the population. These data are estimated by means of the development of units in the sample and information from administrative data sources.

IV. Revisions

In accordance with the CZSO Data Revision Policy, ordinary revisions are carried out in the surveys in order to enhance quality of formerly published data by including late received questionnaires into the processing and by correcting of erroneously reported data.

V. Year-on-Year Comparability

Year-on-year comparability of data is influenced by organizational changes, changes in principal activity, changes to legislation, changes to accounting procedures, and, last but not least, by using new administrative data sources.

In the years 2005–2007, data were surveyed according to the previously used Industrial Classification of Economic Activities (OKEČ) and a different methodology of imputations was used (administrative data sources were not used). Data from the aforementioned years for selected industries (economic activities) have been recalculated retroactively according to the CZ-NACE classification; due to the mentioned reasons, however, they are not fully comparable to those for the following years in terms of methodology. These data can be found in an archive of the CZSO.

https://www.czso.cz/csu/czso/dicvfuts_2005_2007

Based on an amendment of the Decree No 500/2002 Sb (effective since 1 January 2016), on accounting, a retroactive recalculation has been made. The following indicators for the years 2008–2015 have been recalculated to the methodology of the year 2016: revenues, total; costs, total (expenses, total); other operating revenues (income); other operating expenses (charges) and liabilities.

Data from 2008 to 2019 are now comparable in terms of methodology.

VI. International Comparability

Structural statistics in the European Union are governed by the Regulation (EC) No 295/2008 of the European Parliament and of the Council of 11 March 2008 concerning structural business statistics. The indicators published by the CZSO are internationally comparable in terms of methodology.

VII. Comparability with Other Surveys in Terms of Methodology

Results of the annual survey may differ from results published from quarterly or monthly surveys. Monthly and quarterly data are published on days when enterprises have no precise figures for the reference periods available and therefore the figures are replaced by estimates and, moreover, all administrative data sources, that can be applied for imputations of annual data, are not available either.

VIII. Time Series Contents

Time series contain data on legal persons incorporated in the Commercial Register and natural persons doing their business based on a trade licence or other authorisation. Only entities (businesses) doing their business in order to make profit are included. Time series do not contain data on entities belonging to the non-business sphere (organisational units of the state, semi-budgetary organisations partially funded from the state budget or local government budgets, and non-profit organisations).

Time series contain data of selected indicators from businesses classified according to the Classification of Economic Activities (CZ-NACE) in section H – Transportation and storage and section J – Information and communication.

More detailed information on the Classification of Economic Activities (CZ-NACE) can be found at: https://www.czso.cz/csu/czso/classifications

Tables cover data for sections in total, which are further broken down by two-digit code of the CZ-NACE (divisions). Selected tables broken down by three-digit code of the CZ-NACE (groups) and by four-digit code of the CZ-NACE (classes) are also published. Time series are in different files:

Section H – Transportation and storage

Section J – Information and communication

IX. Definitions of Indicators

Number of active enterprises shall mean the number of enterprises, which were active for at least a part of a given year.

Number of persons employed, total (Employed persons) include the registered number of employees – headcount, the number of working self-employed persons (owners of enterprises) and family workers, for whom activities in the enterprise are their main job, and persons employed on an agreement recalculated to standard FTE according to hours worked.

The average registered number of employees is the annual arithmetic average of the number of persons having employment contract with the employer. The FTE number of employees takes into account the number of contracted hours of work.

The average gross monthly wage shall mean the wage without other personnel expenses per employee (headcount or FTE) and month.

Net turnover (Revenues, total) comprises sales (revenues) from the sale of goods, services, and goods for resale, sales from the sale of fixed assets and materials, other operating revenues, revenues from fixed financial assets – units, revenues from other fixed financial assets, interest receivable and similar revenues, and other financial revenues.

Sales of goods and services and sales of goods for resale are the sum of sales from the sale of goods and services and of sales from the sale of goods for resale.

Sales of goods and services are sales (revenues) from the sale of goods produced by an enterprise and sales for provided services.

Sales of goods for resale are sales (revenues) from the sale of products bought to be resold.

Other operating revenues (income) include sales from the sale of fixed assets, sales (revenues) from the sale of material, other operating revenues (e.g. fines, penalties, and interest on late payment, income from ceded receivables, income from written-off receivables, income from licence fees (royalties), subsidies to cover costs, public service compensation in passenger transport services).

Outputs, including trade margin include sales of goods and services, trade margin, change in inventories of own production (+/-) and capitalisation of raw materials, goods, services and fixed assets (-).

Costs, total comprise costs of sales, i.e. costs of goods sold, consumed materials, energy, and services, change in inventories of own production (+/-), capitalisation (-), personnel costs, adjustments to values in the operation area (+/-), other operating costs, costs of shares and units sold, costs related to other fixed financial assets, adjustments to values and reserves in the financial area (+/-), interest payable and similar expenses, other financial expenses, income tax, and transfer of shares of profit/loss to partners (+/-).

Consumed materials, energy, and services consist of consumed purchases (excluding costs of goods sold) and services. Consumed purchases mean the value of purchased and already consumed material, energy, and non-storable supplies (e.g. water for technological purposes, electricity, and water for distribution purposes). Services mean the value of purchased external services (repair and maintenance, travelling expenses, carriage charges, rentals, etc.), i.e. outputs from other units. The indicator of “consumed materials, energy, and services” has the same content as the previous indicator of “production consumption”.

Costs of sales (costs of goods sold) are costs related to the purchase of the goods that were actually sold, in relation to the valuation of decreases in inventory of the goods sold.

Other operating costs (other operating expenses; other operating charges) include the net book value of fixed assets and material sold, taxes, fees, and charges, operating reserves and complex deferred expenses (+/-) and other operating charges (e.g. gifts, contractual penalties and interests on late payments, ceded receivables, write-offs of receivables, insurance, licence fees (royalties)).

Personnel costs are wage costs, including costs for various contracts for work, remuneration to members of company and cooperative bodies, costs for social security and health insurance, and social costs.

Wages, excluding other personnel expenses include basic wages and salaries of employees having employment contract (wage rate, salary scale, contractual wage), extra and additional payments, bonuses, rewards, compensations of wages and salaries, standby duty supplements, and other components of wages or salaries.

Trade margin is the difference between revenues from the goods sold and costs of goods sold. Percentage expression is the proportion of the trade margin on the sales of goods for resale.

Value added is the difference between outputs, including trade margin, and consumed materials, energy, and services.

Profit/loss of the current accounting period is calculated as a difference between revenues, total and costs, total.

Net assets are the assets in the form of fixed, current, and other assets as at the last day of the reference year. Net assets are equal to gross assets minus corrections, i.e. correcting sums (accumulated depreciations) and adjustments. Fixed assets are formed of the value of intangible, tangible and financial fixed assets. Current assets consist of inventories, long-term and short-term receivables and short-term financial assets and finances. Other assets are accruals and receivables for registered capital.

Intangible fixed assets (net) shall mean incorporation expenses (start-up costs), intangible results of research and development, software, valuable rights, goodwill (+/-), other intangible fixed assets, intangible fixed assets in progress and advance payments provided for intangible fixed assets.

Tangible fixed assets (net) shall mean plots, structures, including buildings, separate movable assets and sets thereof, grower’s units of permanent stands and plantations, basic herds and flocks and draught animals, incomplete and other tangible fixed assets, provided advance payments for tangible fixed assets, and the valuation difference on acquired assets (+/-).

Long-term investments (net) shall mean funds that are committed for a long term. These financial assets are hold for over 12 months. They include long-term investment securities and shares/units, long-term loans, time deposits with notice over 1 year.

Inventories excluding advance payments provided (net) involve materials, work in progress or semi-finished products, finished products, animals and goods, excluding advance payments provided.

Receivables (net) express the value to be paid by debtors to an enterprise. They include long-term and short-term receivables – excluding write-offs and adjustments to fixed assets, inventories, investments, and receivables.

Liabilities shall mean equity, other resources, and other liabilities. Equity includes registered capital, own shares and own trade shares (-), agio and capital funds (+/-), reserve funds, indivisible fund and other funds from profit, profit/loss from previous years (+/-), and profit/loss of the current accounting period (+/-), and the item “decided on advance payment of a profit share” (-). Other resources include reserves and long-term and short-term payables. Other liabilities include accruals.

Equity comprises registered capital, own shares and own trade shares (-), agio and capital funds (+/-), reserve funds, indivisible fund and other funds from profit, profit/loss from previous years (+/-), profit/loss of the current accounting period (+/-), and the item “decided on advance payment of a profit share” (-).

Payables express the value, which an enterprise will have to settle with its creditors. They include long-term and short-term liabilities, i.e. issued bonds, liabilities towards credit institutions, received advance payments, trade payables, short-term notes payable, liabilities (payables) to subsidiaries and parent companies, and other liabilities. The following are excluded: tax liabilities including deferred tax liabilities, health insurance debts, debts towards employees, and liabilities from rentals (rent payables) and from a purchase of an enterprise.

Acquisition of intangible and tangible fixed assets shall mean acquisition (by purchase, through own activity, and by technical improvements) of tangible fixed assets, including plots and mineral deposits, and property rented for financial leasing, and intangible fixed assets. The value of acquired assets also involves acquisition, including subsidies minus advance payments. The indicator excludes free acquisitions and takeovers including in-kind contributions.

Note: Potential discrepancies between calculated indicators, or their sums, may be caused by rounding.

X. Additional external links

Regulation (EC) No 295/2008 of the European Parliament and of the Council concerning structural business statistics
http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32008R0295&rid=1

Commission Regulation (EC) No 250/2009 (implementing Regulation (EC) No 295/2008) – definitions of characteristics, the technical format for the transmission of data, the double reporting requirements for NACE Rev.1.1 and NACE Rev.2 and derogations to be granted for structural business statistics
http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32009R0250&qid=1427360995292&from=EN

XI. Explanation of symbols used in the tables

- no cases registered

. data unavailable or unreliable

x not applicable

0 figure less than half the unit used

i. d. individual data