Pain is Still Widespread Throughout the US Economy

Despite recent optimism across corporate America forecasting better days ahead, the pain from COVID-19 remains far from over.  More than 60% of US companies analyzed in a recent Boston Consulting Group study are under financial or operational stress as of the end of the second quarter of 2020, up nearly 50% year-over-year. 

Seven months into the pandemic, a worrisome number of companies remain at risk, underscoring the deep economic distress wrought by COVID-19 and related shutdowns. Of the 721 US companies tracked by the BCG TURN Radar Index, 14% are in distress, which the report defines as either challenged to meet their financial obligations or under operational pressure requiring significant restructuring.  This represents a 43% increase year-over-year.