KPMG Financial Performance Index (KPMG FPI)

A corporate financial performance indexaDiscover which countries and territories are among the best performers by analyzing the financial performance of different sectors and identifying distressed companies. Then compare your company's financial performance with tens of thousands of listed companies around the world. KPMG's Financial Performance Index (FPI) is one of the clearest indices of corporate financial performance.

The KPMG FPI is designed to provide investors, financiers, regulators and governments with insights into the relative strength and health of key markets and sectors. With millions of data points going back to 2017, these long-term trends can help you spot signs of improvement or impending distress.

On this quarterly updated website, you can interact with the data to analyze shifts, trends and related opportunities. You'll also find key highlights from the last quarter and a look at rapidly evolving industries.

The KPMG FPI combines a range of market and financial performance indicators into a single index covering almost 40,000 listed companies from around the world. Please note that only listed companies headquartered in Germany are included in the German version of the KPMG FPI. This means that individual statements on sectors and subsectors, for example, are not directly transferable to the predominantly unlisted German SME sector. The FPI score also has a predictive function, meaning that early signs of financial performance can be identified, usually before they attract media attention.

The index rates companies on a scale of zero to 100, with zero representing serious distress and 100 representing the best performance.

As many companies perform well for most of their existence, there is a natural tendency for a higher quartile score. As a result, around 80 percent of companies in our index score between 85 and 99.

As the KPMG FPI is a Logit2 model, falling below the average can very quickly lead to an index value of zero.

Readers should therefore bear the following in mind when examining this data:

• The absolute score (0 to 100)
• Comparisons between different geographies
• Comparisons between sectors
• Relative performance compared to other companies
• Trends over time
• Macro events that influence trends
• Expected macroeconomic events that may impact future results

Read more about our methodology.

Following a slight decline in the global KPMG FPI score in 3Q23, the score improved from 90.74 in 3Q23 to 91.20 in 4Q23, leading to a recovery in the financial performance of companies worldwide.

Average FPI score and number of non-performing¹ companies | 1 October 2023 to 31 December 2023

After the KPMG FPI Score for listed companies headquartered in Germany had recorded the fifth-highest score since documentation began in 3Q23, the KPMG FPI Score deteriorated to 90.64 (-2.3 %) in 4Q23 - the lowest level since 2Q20.

KPMG FPI Score for listed companies headquartered in Germany over time since 1 October 2019

With an improvement of 5.0 % compared to the previous quarter of 3Q23, the "Food and Beverage" sector recorded the largest percentage improvement in the KPMG FPI score for listed companies headquartered in Germany. The growth of the "Packaged Foods and Meats" sub-sector by 19.22 % was the main reason for this development. The "Utilities" sector recorded growth of 0.9 % in the same period and thus the second largest percentage improvement, closely followed by "Business Services" with an improvement of 0.2 %. From 3Q23 to 4Q23, there were only four sectors that saw an improvement in the KPMG FPI score for listed companies headquartered in Germany, while the remaining sectors saw a deterioration.

The sectors with the largest percentage deterioration in 4Q23 include "Biotechnology" (-7.9 %), "Raw Materials and Natural Resources" (-5.6 %) and "Pharmaceuticals" (-4.5 %). The deterioration in the "Raw Materials and Natural Resources" sector was significantly influenced by the performance of the "Metals and Mining" sub-sector (-5.6 %).

Comparative period | 1 October 2023 to 31 December 2023

In 4Q23, the "Transportation and Logistics" sector recorded the highest KPMG FPI score for listed companies headquartered in Germany at more than 96.00. The Utilities sector recorded a score of 93.00 in 4Q23, which is attributable to the positive development in the Gas, Water and Multi Utilities sector (+0.9 %). The subsector with the highest score in 4Q23 was "Marine Transportation" (97.30), followed by "Entertainment Production and Services" (97.15) and "Semiconductors and Semiconductors Equipment" (96.82).

The lowest KPMG FPI scores for listed companies headquartered in Germany were recorded in the "Infrastructure and Real Estate" (85.55) and "Pharmaceuticals" (89.47) sectors. In the "Infrastructure and Real Estate" sector, this development is attributable to the "Real Estate Operating and Management Companies" sub-sector with a score of 82.70. In the "Pharmaceuticals" sector, there was a significant deterioration due to the "Pharmaceutical Products" sub-sector (-4.5 %). The three lowest KPMG FPI scores for listed companies headquartered in Germany at sub-sector level are "Communications Equipment" (66.84), followed by "Construction and Engineering" (76.50) and "Electrical Equipment" (82.38).

Average KPMG FPI score for listed companies headquartered in Germany | 1 October 2023 to 31 December 2023

(sectors weighted by market capitalisation)

In a European and global comparison, German companies in the "Biotechnology", "Business Services", "Energy", "Healthcare", "Media and Entertainment" and "Transportation and Logistics" sectors each have a higher score than the European and global comparison sectors.

In contrast, German companies in the "Aerospace and Defence", "Infrastructure and Real Estate" and "Pharmaceuticals" sectors have a score of less than 90.00, which is significantly lower than the European and global comparison.

Average KPMG FPI score for listed companies headquartered in Germany | 1 October 2023 to 31 December 2023

The following chart provides an individual comparison of the largest sectors and subsectors (based on market capitalisation) for listed companies headquartered in Germany.

Please select the relevant sector for a comparison

"Zombies" are companies that have been on the verge of insolvency for three or more consecutive quarters (with a value of 0 on the KPMG FPI).

The number of global zombies fell by 10.6 % this quarter (from 1,300 in 3Q23 to 1,162 in 4Q23). While this is a good sign, it should be noted that the number of zombies almost doubled year-on-year (from 2,558 in 2022 to 4,165 in 2023). Many of these companies may already be in distress or working on restructuring measures.

The sectors with the highest proportion of global zombies in 4Q23 included "Raw Materials and Natural Resources" (194), "Technology and Telecommunication" (173) and "Biotechnology" (138).

Development of the number of zombie companies at global level by sector | 1 October 2023 to 31 December 2023

The KPMG Financial Performance Index measures the financial health of individual companies. Based on an initial pool of more than 40,000 companies worldwide, the KPMG FPI identifies those companies, sectors, regions, countries and territories that are performing well and those that are underperforming. A higher score in the KPMG FPI indicates a strong performance.

KPMG's FPI model is based on the Logit Probability to Financial Default model (developed by John Campbell, Jens Hilscher and Jan Szilagyi), which is based on eight explanatory variables that include financial and market variables to determine the overall financial health of a company. KPMG's FPI is based on raw data from the S&P Capital IQ database.

We publish our findings every quarter. However, the model can be run on any given day to reflect current market changes. Please contact your respective KPMG member firm or contact us at in-fmkpmgfpi@kpmg.com for more information.