Golub Capital Middle Market Report
Featuring the Golub Capital Altman Index
Revenue in the U.S. Middle Market Grew By 12% in the First Two Months of Q2 2022
Index earnings grew by 2% year-over-year during the same period.
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 Q2 2022 (YoY)||Revenue||Earnings|
Source: Golub Capital Internal Data.
Lawrence E. Golub, CEO of Golub Capital, said:
As expected, the economy is demonstrating muddling growth in profits and faster growth in revenues, which means margins are shrinking. This is likely to persist throughout the year, as businesses continue to adjust to higher inflation. The 12% nominal growth in revenue year over-year well outpaced inflation, showing health in the economy consistent with the low unemployment rates, even as costs for businesses rise. We expect strong management teams and private equity sponsors will adapt to this environment with speed and creativity, much as they adapted to Covid in 2020.
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.
The Golub Capital Altman Index is provided as an indicator only and does not constitute investment advice or the offer to sell or a solicitation to buy any security. Some of these statements constitute forward-looking statements, which may be predictions about future events, future performance, or future financial conditions. Some of these statements reflect opinions based upon the data presented in the Index, and these opinions may be incorrect. Actual results could vary materially from those implied or expressed in such forward-looking statements for any reason. The Golub Capital Altman Index has been created on the basis of information provided by third-party sources that are believed to be reliable, but the information has not been verified independently by Golub Capital. Golub Capital makes no warranty or representation as to the accuracy or completeness of such third-party information.
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- The Golub Capital Altman Index (GCAI) data for 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 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.
- Effective Q2 2022, the Golub Capital Altman Index (GCAI) excludes Golub Capital portfolio companies that have recurring revenue-based credit facilities. The data referenced herein may not reflect all companies in the loan portfolio of Golub Capital during the time periods indicated.