Golub Capital Middle Market Report
Featuring the Golub Capital Altman Index
Earnings in the U.S. Middle Market Grew by 9% in the First Two Months of Q1 2022
Index revenue grew by 18%, outpacing earnings growth for the third consecutive quarter
The Golub Capital Altman Index can provide early insight into financial performance of public companies and GDP in advance of earnings season.
Golub Capital Altman Index Highlights
|Year-Over-Year (YoY) Growth||Revenue||Earnings|
|Key Sectors Q1 2022 (YoY)||Revenue||Earnings|
Source: Golub Capital Internal Data.
Lawrence E. Golub, CEO of Golub Capital, said:
The boom part of 2021 boomflation has started to decelerate in the first quarter of 2022. The economy is still strong, and the 18% nominal growth in revenue year-over-year is good but it is not great. Earnings growth of 9% was closer to flat in real dollars after adjusting for the nearly 8% increase in consumer prices during the same period. Higher input costs and labor costs are weighing down profitability, even in our portfolio of market leading businesses in resilient industries. Demand remains robust, and companies will continue to adapt if inflation remains high.
About the Golub Capital Altman Index
A leading expert on credit markets, Dr. Edward I. Altman is the Max L. Heine Professor of Finance, Emeritus at the NYU Stern School of Business, and Director of Research in Credit and Debt Markets at the NYU Salomon Center for the Study of Financial Institutions. He is currently an advisor to several foreign central banks. Professor Altman has published or edited two-dozen books and over 150 articles in scholarly finance, accounting and economic journals. He has been inducted into the Fixed Income Analysts Society Hall of Fame, served as President of the Financial Management Association, was an FMA Fellow, and was amongst the inaugural inductees into the Turnaround Management Association Hall of Fame. He received his MBA and Ph.D. in Finance from the University of California, Los Angeles.
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- The Golub Capital Altman Index (GCAI) data for Q1 2020, Q2 2020 and Q2 2021 are presented solely for the purpose of continuity. Readers are encouraged to interpret the data from those periods with caution. The GCAI is designed to offer early insight into the performance of the U.S. economy, based on data from the first two months of each calendar quarter. GCAI results for Q1 2020 were based on data from January and February 2020 and did not reflect the economic impact of the COVID-19 pandemic in March 2020. GCAI results for Q2 2020 were based on data from April and May 2020 and did not reflect the meaningful reopening of the U.S. economy in June 2020. GCAI results for Q2 2021 were based on data from April and May 2021 compared to April and May 2020, when many businesses were affected by lockdowns and other restrictions.