As the economic impacts of the COVID-19 pandemic worsen, more than half of US companies are under financial or operational stress, according to new research by the Boston Consulting Group.
BCG's analysis found that more than 60 percent of US companies are under financial or operational stress as of the end of Q2 2020, a 49 percent increase over the same quarter last year. A further 14 percent are in distress, meaning they're having difficulty meeting their financial obligations or under operational pressure that requires major restructuring, according to BCG.
The newly released findings were part of the BCG TURN Radar index, which was developed by BCG's special transformation, turnaround, and restructuring unit. The index looks at a company's level of distress by looking at 20 key performance indicators across three categories: financial, market, and qualitative. The index reports on more than 25,000 publicly traded companies with more than $100 million in revenue across 80 countries and 20 industry sectors.
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