Methodology of time series of annual financial indicators

I Basic definition of monitored economic activity

Time series contain data of selected indicators from businesses classified according to the Classification of Economic Activities (CZ-NACE) in the section G – Wholesale and retail trade; repair of motor vehicles and motorcycles.

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

II Data sources

1 Statistical surveys. The data source for the time series is the annual structural survey of businesses (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 the years 2005–2009, was cancelled in 2010 and data on natural persons have been modelled using administrative data.

More information about the P5–01 survey can be found at:
https://www.czso.cz/csu/vykazy/p-5-01-rocni-vykaz-ekonomickych-subjektu-vybranych-produkcnich-odvetvi_psz_2021 (Czech only).

2 Administrative data sources, downloaded data. Within the processing of the P5–01 task, the following are used:

– Information from the General Financial Directorate - Income tax (legal persons and natural persons) – tax return for personal and corporate income tax

– Information from the General Financial Directorate - Value added tax

– Czech Social Security Administration – the “Register of Insured Persons“ – data from the Czech Social Security Administration

III Creating population and sample, imputations and estimations of the non-surveyed part of the population

1 Population and sample

Population (universe) for the P5–01 survey involves legal and natural persons incorporated in the Commercial Register and selected unincorporated natural persons.

The sample comprises reporting units completing the statistical questionnaire (report). It depends on the reporting unit’s principal activity and size measured by the number of employees, volume of sales (revenues from sales), and volume of assets whether the reporting unit will be included in the sample. 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 entities (units) featuring parameters compliant with an exhaustive sampling have the reporting duty automatically. These are the entities (units), the absence of which in the sample could reduce the data validity at the level of a certain industry (economic activity), 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 size as for the number of employees), the inclusion of many of which is important for correct progress of imputations and for the form of final outcomes. The part of 100% sample 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 for 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 the year 2021, the exhaustive part of the sample includes reporting units with 50+ employees provided that they have annual turnover of CZK 200+ million or net assets of CZK 100+ million, units with less than 50 employees provided that they have annual turnover of CZK 370+ million or net assets of CZK 800+ million, units with net assets of CZK 100+ million and concurrently with annual turnover of CZK 200+ million, units with financial assets of CZK 300+ million, units with net assets of CZK 300+ million, units with tangible fixed assets of CZK 100+ million, units with intangible fixed assets of CZK 20+ million, and all public non-financial corporations.

2 Imputations and estimations of the non-surveyed part of the population

A comprehensive reform of the statistical surveys (which involved the transition from the Industrial Classification of Economic Activities (OKEČ) to the 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 of the weighing method has been applied. That means each unit (with 20+ employees) or a 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 P5–01 annual survey, 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 (report). 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. A typical example of partial non-response in the case of the P5–01 questionnaire are some organisational units of foreign companies, which are able to report truthfully revenues and expenses achieved in the territory of the Czech Republic, but they are unable to distinguish the volume 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 to which the version of the P5–01 questionnaire with a simplified structure has been sent to fill in.

3 Estimation of the non-surveyed part of the population. Data are estimated by means of the development of units in the sample and information from administrative data sources.

IV Overview of basic published indicators

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

The number of persons employed, total (employed persons) includes the registered number of employees – headcount, the number of working self-employed persons (owners of enterprises) and contributing family workers, for whom activities in the enterprise are their main job, and persons working/employed under various contracts for work (an agreement on work performance and an agreement on work activity) converted to full-time equivalent (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 and services and of goods for resale, sales from the sale of fixed (long-term) assets and materials, other operating revenues, revenues from fixed (long-term) financial assets – units, revenues from other fixed (long-term) financial assets, revenue (income) interest (interest receivable) and similar revenues, and other financial revenues.

Sales of goods and services and sales of goods for resale (Sales, total) 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 “production consumption” indicator in the previous concept.

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 (an agreement on work performance and an agreement on work activity), remuneration to members of company and cooperative bodies, costs for social security and health insurance, and social costs.

Wages, excluding other personnel expenses (costs) 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 establishment (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 bound (locked up) 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 (+/-), 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, rental commitments, and liabilities 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 non-monetary (in-kind) contributions.

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

V Retrospective corrections, revisions, estimate refinement procedure

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

Together with the publication of the data for 2021, the data for 2020 were revised. In addition to the inclusion of late received questionnaires into the processing and corrections of erroneously reported data, the system of imputation was adjusted so that administrative data are used to a wider extent.

VI Comparability

1 Comparability over time

Year-on-year comparability of data is influenced by organisational 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/malavfuts_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 according to the methodology of the year 2016: revenues, total; costs, total (expenses, total); other operating revenues (income); other operating expenses (charges) and liabilities.

Data for the years 2008–2021 are now comparable in terms of methodology.

2 Comparability with other outputs

Results of the annual survey may differ from results published from quarterly or monthly surveys. Monthly and quarterly data are published on dates when enterprises do not have precise figures for the reference period available and therefore the figures are replaced by estimates (informed guess); moreover, all administrative data sources, which can be applied for imputations of annual data are not available either.

3 International comparability

Structural statistics in the European Union are governed by the Regulation (EU) 2019/2152 of the European Parliament and of the Council of 27 November 2019 on European business statistics, repealing 10 legal acts in the field of business statistics.

The indicators provided to Eurostat are internationally comparable in terms of methodology.

VII Seasonal adjustment

Seasonal adjustment is not performed within the annual time series.

VIII Data publishing

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 the section G – Wholesale and retail trade; repair of motor vehicles and motorcycles.

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 G – Wholesale and retail trade; repair of motor vehicles and motorcycles

Division 45 – Wholesale and retail trade and repair of motor vehicles and motorcycles

Division 46 – Wholesale trade, except of motor vehicles and motorcycles

Division 47 – Retail trade, except of motor vehicles and motorcycles

A table with total sales in retail trade by three-digit code of the CZ-NACE classification and a table of selected indicators of retail enterprises with 250+ employees are also published.

The data are published once a year at:
https://www.czso.cz/csu/czso/2-malavfucr_b

The data provided to Eurostat can be found at:
https://ec.europa.eu/eurostat/databrowser/view/SBS_NA_DT_R2/default/table?lang=en&category=sbs.dt.sbs_na_dt

IX Additional methodological information and external links

Regulation (EU) 2019/2152 of the European Parliament and of the Council of 27 November 2019 on European business statistics, repealing 10 legal acts in the field of business statistics
https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32019R2152&from=EN

Commission Implementing Regulation (EU) 2020/1197 of 30 July 2020 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics repealing 10 legal acts in the field of business statistics
https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32020R1197&from=EN

National Reference Metadata in Euro SDMX Metadata Structure (ESMS)
https://ec.europa.eu/eurostat/cache/metadata/EN/sbs_esms_cz.htm

X 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