Golub Capital Middle Market Report
Featuring the Golub Capital Altman Index
Earnings in the U.S. Middle Market Grew by 15% in Q3 2020
Overall, Index revenue grew by 1% during the first two months of the third 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 Q3 2020 (YoY)||Revenue||Earnings|
Source: Bloomberg and Golub Capital Internal Data.
Lawrence E. Golub, CEO of Golub Capital, said:
The U.S. economy showed encouraging signs of recovery in the third quarter of 2020. Strong year-over-year earnings growth in our portfolio of U.S. middle market companies suggests that companies quickly cut costs to adapt to COVID and benefited from improved margins as the economy reopened. Robust revenue and earnings growth in the Technology sector indicate that businesses remained willing to invest in enhancing their efficiency. We don’t want to overstate the evidence of recovery; the Golub Capital Altman Index does not reflect the ongoing impact of COVID in sectors like airlines, energy and hospitality, which are not in the Golub Capital portfolio. However, our data suggests that investors should not underestimate the resilience of the U.S. middle market.
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 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.