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.

The most distressed sectors in the US economy are automotive and mobility (52% stressed, 16% distressed), travel and tourism (61% stressed, 16% distressed), and retail (67% stressed, 18% distressed). More than 52% of restaurants are categorized in distress, though the industry is beginning to climb out of steep decline that began in March. A lack of additional stimulus money from the government compounds the risk for these sectors.