Despite the adverse impact of the pandemic, the majority of G20 companies have grown more financially resilient over the past year
However many companies continue to be plagued by operational issues, and are struggling to establish operational resilience in the face of growing supply chain and climate change disruption
Despite 69% of G20 companies stating that the pandemic has caused lasting damage to their industry, many have actually developed greater financial resilience over the past year – with 58% having returned to or exceeded pre-pandemic levels for turnover and number of employees.
While 55% are growing, and a further 39% are sustainable or covering expenses, the percentage of companies that report being in distress has more than halved compared to the February 2021 Resilience Barometer (7% in January 2022 versus 16% in February 2021).
One of the key factors driving businesses’ improved financial resilience is increasingly the ability to manage debt. In September 2021, 69% of G20 businesses said that they were struggling to service all their debts, compared to 62% today – a 7 percentage point decrease.
Our data also reveals a strong rebound in expected M&A activity, which serves as a further indication of financial recovery. In February 2021, 13% of G20 companies said they did not expect to conduct any M&A; this has dropped by 5 percentage points to just 8% in January 2022.