A new report sheds light on the harsh realities faced by private US companies, witnessing a substantial decline of over 20% in earnings before interest, taxes, depreciation, and amortization (EBITDA) from 2019 to 2022. The Federal Reserve's rate hikes have intensified financing costs, contributing to a significant contraction in profit margins for these businesses. The alarming increase in bankruptcy filings, surpassing 250% in 2023, paints a bleak picture of the economic challenges confronting smaller companies.

https://www.bloomberg.com/news/articles/2024-01-08/private-us-companies-increasingly-going-bust-as-profit-shrinks?utm_source=twitter&utm_campaign=socialflow-organic&utm_content=economics&utm_medium=social&cmpid%3D=socialflow-twitter-economics

econ

A new report sheds light on the harsh realities faced by private US companies, witnessing a substantial decline of over 20% in earnings before interest, taxes, depreciation, and amortization (EBITDA) from 2019 to 2022. The Federal Reserve's rate hikes have intensified financing costs, contributing to a significant contraction in profit margins for these businesses. The alarming increase in bankruptcy filings, surpassing 250% in 2023, paints a bleak picture of the economic challenges confronting smaller companies. 

Source: https://www.bloomberg.com/news/articles/2024-01-08/private-us-companies-increasingly-going-bust-as-profit-shrinks?utm_source=twitter&utm_campaign=socialflow-organic&utm_content=economics&utm_medium=social&cmpid%3D=socialflow-twitter-economics