An index of corporate financial performance
Spot which countries and territories are performing best. Compare financial performance across sectors. Identify distressed companies. Compare your company’s financial performance against tens of thousands of public companies around the world. KPMG’s Financial Performance Index is one of the clearest indices of corporate financial performance.
For investors, financiers, regulators and governments, the KPMG FPI seeks to provide insights into the relative strength and health of key markets and sectors. With millions of datapoints back to 2017, our long-term trends can help you spot signs of improvement or impeding distress.
Updated quarterly, this webpage allows you to interact with the data to analyze shifts, trends, and related opportunities. You’ll also find key highlights from the most recent quarter and a spotlight on fast-moving industry sectors.
Globally, corporate financial performance declined in the first quarter of 2022, with the KPMG FPI falling from 90.47 in 4Q21 to 90.33 in 1Q22.
South America was the top performing region with a KPMG FPI score of 92.32, followed by Asia at 91.12. The largest drops were in Europe (from 90.15 to 88.98 q-o-q).
HQs in Canada, Pakistan and Brazil witnessed the greatest growth in KPMG FPI. HQs in Sweden and UK saw the greatest decline, falling from 90.22 to 87.27 and 91.00 to 88.90 respectively.
Top performing sectors were Chemicals and Transportation and Logistics. Sectors like Raw Materials and Natural Resources, Energy, and Travel and Hospitality showed recovery in 1Q22.
This quarter saw a 30 percent increase in ‘zombies’ (from 354 to 463 q-o-q).
Globally, corporate financial performance declined in the second quarter of 2022, with the KPMG FPI falling from 90.33 in 1Q22 to 90.26 in 2Q22.
Africa was the top performing region with a KPMG FPI score of 92.39, followed by Asia at 92.23. The largest drops were in Oceania (from 82.85 to 73.57 q-o-q).
HQs in Hong Kong (SAR), China, China and Turkey witnessed the greatest growth in KPMG FPI. HQs in Canada and Australia saw the greatest decline, falling from 78.26 to 62.46 and 82.34 to 72.26 respectively.
Top performing sectors were Chemicals and Transportation and Logistics. Sectors like Industrial Conglomerates, Packaging Products, and Trading Companies and Distributors showed recovery in 2Q22.
This quarter saw a whopping 70 percent increase in ‘zombies’ (from 463 to 803 q-o-q).
Globally, corporate financial performance improved in the third quarter of 2022, with the KPMG FPI rising from 90.26 in 2Q22 to 90.66 in 3Q22.
South America was the top performing region with a KPMG FPI score of 93.61, followed by Africa at 93.34. All regions experienced growth except for Europe, which dropped from 89.38 in 2Q22 to 88.67 in 3Q22.
HQs in Australia, Brazil and Vietnam witnessed the greatest growth in KPMG FPI. HQs in Hong Kong (SAR), China and Singapore saw the greatest decline, falling from 90.12 to 88.35 and 91.15 to 89.82 respectively.
Top performing sectors were Chemicals and Food and Beverage. Sectors like Biotechnology, Pharmaceuticals, and Raw Materials and Natural Resources showed recovery in 3Q22.
This quarter saw a 4 percent increase in ‘zombies’ (from 803 to 835 q-o-q).
The top performing sectors were Chemicals and Food and Beverage, driven by consistent growth in the subsectors Diversified Chemicals, Specialty Chemicals, and Restaurants, Packaged Foods and Meats respectively.
It is worth noting that sectors Biotechnology, Agriculture and Husbandry, and Travel and Hospitality experienced a strong recovery in 3Q22.
Over the most recent 6-year period, sectors Raw Material and Natural Resources and Energy witnessed strong growth, primarily driven by strong performance in the subsectors Metals and Mining and Oil and Gas. On the other hand, sector Life Sciences Tools and Services experienced the most decline during the same period.
Sector performance across regions
In 3Q22, the globally distressed sectors Raw Materials and Natural Resources and Biotechnology were under the greatest pressure in North America (79.18 and 87.33 respectively). Furthermore, the top performance of Chemicals and Food and Beverage was led by Africa (99.68) and Asia (96.99) respectively.
Overall, Oceania witnessed the broadest distress with 13 out of 21 sectors reporting a KPMG FPI of less than 90. HQs in Oceania in sectors Life Sciences Tools and Services, Pharmaceuticals, Technology and Telecommunication, and Healthcare are suffering the most distress with a KPMG FPI of 76.10, 82.16, 83.89, and 84.57.
This quarter saw a rise of four percent in number of zombies (from 803 in 2Q22 to 835 in 3Q22). These companies may already be experiencing distress or working through restructuring strategies.
The most zombies were found in the sectors Technology and Telecommunication (106), Raw Materials and Natural Resources (99) and Consumer Markets (89). Further, Healthcare (64), Biotechnology (77), and Food and Beverage (35) saw significant q-o-q increase.
About KPMG Financial Performance Index
The index scores companies on a scale of 0-100, with 0 indicating serious distress and 100 being best performing.
Since many companies tend to perform well for most of their lifespans, there is a natural bias towards 100. As such, around 80 percent of the companies in our index score between 85 and 99.
As the KPMG FPI is a logit model, a drop below the average can very quickly lead to an index score of 0.
When exploring this data, therefore, readers should consider:
- The absolute score (0 to 100)
- Comparisons across geographies
- Comparisons across sectors
- Relative performance against peers
- Trends over time
- Macro events which are driving trends
- Expected macro events which may affect future scores.
Read more about our methodology
Want to see your company’s score?
To understand your company’s current index score or to uncover deeper insights about specific markets or segments, contact your local KPMG member firm. KPMG’s global network of KPMG professionals have the data, sector and geographic expertise to help you understand your score and tie it back to your business needs. Whether it is benchmarking, identifying targets, comparing sectors or looking for trends over time, KPMG professionals can connect you right to the information you need to capitalize on your opportunities. That’s our business. Please contact us at firstname.lastname@example.org to find out more.
Companies HQ in Oceania, North America, and South America showed recovery in 3Q22, with the KPMG FPI increasing by 6.13 bps, 1.36 bps, and 1.72 bps. Asia and Africa continued to show growth in 3Q22.
On the other hand, Europe experienced a q-o-q dip in 3Q22, falling by 0.71 bps. This can be attributed to the declining performance of companies HQ in 9 out of 12 countries, with Italy and Germany down by 1.31 bps and 1.09 bps respectively.
Country and Territory performance: Q-o-Q biggest gainers and losers
An analysis of the KPMG FPI country data indicates that companies HQ in Australia, Brazil, Vietnam, and Pakistan experienced the largest q-o-q growth in KPMG FPI, with Australia up 9.06 percent on 2Q22.
Companies HQ in Hong Kong (SAR), China and Singapore saw the greatest decline in average KPMG FPI scores.
Distressed countries and territories
Given the natural bias for the KPMG FPI to score well performing companies at high levels (typically between 85 and 99), this index provides significant opportunity to spot distressed companies that fall outside of the normal range.
And, by linking market and financial performance indicators together in a single index, the KPMG FPI differentiates between market-wide drops and company underperformance.
In 3Q22, the KPMG FPI identified 1,825 companies (of the ~34,500 analyzed) with a KPMG FPI score of 0.
Low ranking companies were most common in Canada (with 548 or 27.1 percent of the 2,021 Canadian companies analyzed), the US, Australia, and Sweden.
For significant underperformance, please see Zombie section.
The Financial Performance Index (KPMG FPI) measures the financial health of individual companies. Based on a pool of more than 28,000 companies globally, KPMG FPI is able to identify those companies, sectors, regions, countries and territories that are performing well and those that are underperforming. A higher score on the KPMG FPI represents strong performance.
The KPMG FPI model draws from the Logit Probability to Financial Default model (developed by John Campbell, Jens Hilscher and Jan Szilagyi), which is based on eight explanatory variables encompassing financial and market variables, to arrive at the overall financial health of a company. The KPMG FPI is based on raw data from S&P Capital IQ database.
We release our insights publicly every quarter. However, the model can be run on any given day to reflect live market changes, so please reach out to your local KPMG member firm or contact us at email@example.com if you would like additional information.