How many companies live month to month in America?
Now that we’re officially in a recession and news of the $1 Trillion bailout proposal from the Trump Administration is set to include a $50 Billion bailout to the airline industry as well as a check mailed to every American, I have begun to wonder more and more about small businesses in America.
There are over 30M small businesses in the US employing nearly half (60M) of Americans. Many of these businesses, especially in industries hardest hit by Coronavirus such as travel and hospitality are struggling- there have been layoffs, furloughs, loans taken out and companies which have gone under all within only a few weeks of the outbreak in America.
Much like many Americans, one Redditor asks, how many businesses live month to month (https://www.reddit.com/r/investing/comments/fkau1z/so_do_megacorporations_just_live_paycheck_to/?utm_source=share&utm_medium=ios_app&utm_name=iossmf). It is a valid question as conversations over the last few days have seemed to suggest that many companies are highly leveraged and were overdue for a ‘correction’ in the market and valuations, I have begun to wonder what businesses are really like fundamentally.
It seems that like many Americans, they don’t have much in savings, spend a lot on things they don’t necessarily need to and have a lot of debt. So if we are in for a wild ride with this downturnad there is set to be a reckoning for companies of all sizes. Small business grants or federal bailouts aside, the financial basics of companies are likely to change after this is all over.
Pretty funky stuff-