Dozens of ASX-listed companies are on the brink of collapse and in need of drastic change to turn things around, with potential investors warned to be on the lookout for zombie firms.
According to data from big four accounting firm KPMG released on Monday, there has been a disconcerting rise in zombie companies in the wake of the economic downturn rocking Australia.
A zombie company is defined as a company that generates just enough cash to pay for running costs and interest on their debts, but not much else, making them teeter on the edge of financial ruin.
KPMG ranks all ASX companies out of 100 based on their publicly available results, and zombies typically score zero for nine months in a row due to poor financial health.
In the past …
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