Do the statistics surprise you?
Late last year, the Australian Securities and Investments Commission (ASIC) released its corporate insolvency statistics for 2018-19 financial year. Looking towards the 2020 year prompted us to consider what trends have formed over the years.
ASIC reports on 25 industry categories, which are:
|Accommodation & food services||Health care & social assistance|
|Administrative & support services||Information media & tele-communications|
|Agriculture, forestry & fishing||Manufacturing|
|Arts & recreation services||Mining|
|Construction||Other (business & personal) services|
|Education & training||Professional, scientific & technical services|
|Electricity, gas, water & waste services||Public administration & safety|
|FIS–Credit provider||Rental, hiring & real estate services|
|FIS–Deposit taking institutions||Retail trade|
|FIS–Insurance||Transport, postal & warehousing|
|FIS–Managed investments||Wholesale trade|
|FIS–Other financial services||Unknown|
Following the above, we reviewed ASIC's data (which date back to 2013) and selected the following key industries to share a preview of our findings:
- Accommodation & food services
- FIS (Credit provider, deposit-taking institutions, insurance, managed investments, other financial services, superannuation)
Here are the trends and profile by state/territory that have formed so far from our analysis. Look out for our upcoming The Worrells Insolvency Report: 2020, which will delve into the data and make some conclusions.
In the meantime, we'd love to hear what your views are. Do any of these trends surprise you?
(Click on any graph to expand image).
Statistics source: © Australian Securities & Investments Commission. Reproduced with permission.
Note: These statistics record the number of companies entering into a form of external administration for the first time each month by industry – from July 2013. A company will be included only once in these statistics, regardless of whether it subsequently enters into another form of external administration. The only exception occurs where a company is taken out of external administration (e.g. as the result of a court order), and at a later date re-enters external administration.
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