Rise in 'Zombie Companies' Threatens Australian Economy

According to data from big four accounting firm KPMG released on Monday, there has been a disconcerting rise in ‘zombie companies’ in the wake of the economic downturn rocking Australia.

In the past six months alone, the number of publicly-listed companies entering the ‘zombie’ zone has increased by 51 per cent. “There’s a growing trend of them,” Ms Dickerson told news.com.au. “There are more companies falling into this bucket.”The average market cap of a zombie company - which is the number of shares multipled by their price - has increased from $20 million to $24 million, meaning bigger companies are facing financial woes.

“Imminent breaching of loan covenants, having to manage supplier payments to sustain cashflow, significant tax arrears or having a large portion of debt maturing soon while also underperforming are telltale signs a company is perpetually struggling,” Ms Dickerson said. For the natural resources sector, she said massive geopolitical events such as the Ukraine-Russia war and the recent conflict in Gaza had caused key materials including petrol to become more expensive and had a major impact on supply chains.

ایران آخرین اخبار, ایران سرفصلها

Similar News:همچنین می توانید اخبار مشابهی را که از منابع خبری دیگر جمع آوری کرده ایم، بخوانید.

Companies set to pay employees working from home differentlyLaw firm Herbert Smith Freehills has found 37 per cent of Australian companies plan to pay employees differently if they choose to work from home, while 83 per cent expect their staff to spend more time in the office over the next two years.
منبع: SkyNewsAust - 🏆 7. / 78 ادامه مطلب »

How one of the 'bloke-iest' companies in Australia is smashing the gender pay gapIn early 2024, more than 4.6 million workers are about to find out how much less the company they work for pays female staff. Many companies are working now to fix the problem.
منبع: abcnews - 🏆 5. / 83 ادامه مطلب »