KPMG Financial Performance Index (KPMG FPI)

The KPMG FPI distills a range of market and financial performance indicators into a single index covering nearly 34,000 public companies around the world. The index scores companies on a scale of zero to 100, with zero indicating serious distress and 100 being best-performing.

Since many companies tend to perform well for most of their lifespans, there is a natural survivorship bias towards a higher quartile score. As such, around 80 percent of the companies in our index score between 85 and 99. As the KPMG FPI is a logit model, a drop below the average can very quickly lead to an index score of zero. Please refer to the full report for full details. 

The average KPMG FPI for companies headquartered in New Zealand has increased (i.e. an increase in financial corporate health) from 1Q232 to 2Q23 as companies adjust to the volatility of late 2022.

The average KPMG FPI in New Zealand has decreased from 93.81 in 1Q23 to 93.25 in 2Q23. New Zealand’s FPI score has remained relatively stable (within 2.00 bps) over the last four quarters.

Four of the thirteen sectors included in the analysis experienced an increase in their KPMG FPI score from 1Q23 to 2Q23.

The sectors which experienced the greatest increase were Financial Services and Healthcare. Business Services and Pharmaceuticals experienced the greatest decrease.

We have observed an increase in the number of Zombie companies (companies scoring 0 on the KPMG FPI for three or more consecutive quarters) from 1Q23 to 2Q23.

The global KPMG FPI score in 2Q23 was 89.90, an increase from 89.37 in 1Q23. This followed a decline in the global FPI average in 4Q22 and 3Q22.

The New Zealand average FPI score has been above the global average for these periods.

New Zealand experienced a slight decrease in 2Q23 (0.76 bps) while the global average increased (0.53 bps).